AXA Real Estate Investment Managers has completed a forward funding deal for a 168-bedroom Premier Inn hotel at Cubex Land’s Finzels Reach development in Bristol.
The fund manager, on behalf of its long lease fund, has agreed to pay £17.8m – a 4.85% yield – to fund the construction of the hotel, which has been prelet let for a 30-year term. Palmer Capital-backed Cubex secured the prelet last October.
Finzels Reach is a major mixed-use scheme in Bristol city centre owned by Palmer Capital. The 4.7-acre site is home to 195 flats and 115,000 sq ft of offices and there are plans for a further 120,000 sq ft of offices and 177 flats plus 30,000 sq ft of leisure development.
Cubex was advised by Savills and GVA; AXA was represented by DTZ.
