Mayfair Capital’s Property Income Trust for Charities has bought a Premier Inn hotel in Leeds from Town Centre Securities for £16m.
The deal reflects a net initial yield of 4%. The property has a WAULT of 20.3 years and a WAULT to break of 15.3 years, and is let to Premier Inn Hotels with a guarantee from owner Whitbread until 2042 with indexed rent reviews.
The hotel was constructed in 2017 and comprises 136 bedrooms over eight floors with a bar and restaurant on the ground floor. It has an EPC rating of A and is considered a net-zero carbon building, with solar panel-based renewable energy production on site and electric vehicle charging points.
Hector Ahern, investment associate at Mayfair Capital, said: “After muted activity in the hotel sector during 2021, the outlook for long-let hotels appears to be improving rapidly. As the largest operator with a strong balance sheet, Premier Inn has remained largely stable, with well-located assets and strong fundamentals. It remains the operator of choice for most institutional real estate investors.”
Craig Burrow, development director at TCS, added: “The strategic disposal of this strong investment asset will enable us to progress with the next phase of development at Whitehall Riverside. TCS has a long-term commitment to the regeneration of this key waterside site and continues to work closely with Leeds City Council to maximise its potential.
NorthCap acted for Mayfair Capital.
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
