Moorfield is putting its faith in the grey pound with the £110m acquisition of a WA Shearings hotel portfolio.
It bought the 41-strong regional hotel portfolio at a yield of just over 6% through its Moorfield Real Estate Fund.
Managing director Marc Gilbard said the fund was attracted to the portfolio because of its customer demographics. WA Shearings, the UK’s largest coach holiday operator, boasts occupancy levels of more than 90%, driven by its “third ager” – over-55 – customer base.
Gilbard said MREF would now start to identify locations to expand the hotel chain.
“We are looking at what they have and seeing if we can work together to optimise the use. With our property and corporate expertise we can go out and buy individual hotels and businesses and incorporate them with the Shearings business,” he said.
The hotels have been bought in a sale-and-leaseback deal where Shearings will take 25-year leases, with yearly RPI-linked upward reviews.
The acquisition brings MREF’s spending to around £350m. The fund, which closed in July, has a total purchasing capacity of £1.1bn.
Deloitte advised Shearings.
