Richard Balfour-Lynn’s MWB Group has confirmed the sale and leaseback of its Malmaison hotel in Aberdeen to CIP Property on behalf of Aviva Investors Property Trust for £16.1m.
Proceeds from the sale of the 80-bedroom hotel, which was completed in cash, will be used to reduce Malmaison’s debt, which as at 31 December 2010 stood at £272.1m.
The 54,700 sq ft property will be leased back to Malmaison for an initial rent of £1.2m pa. The hotel chain will enter into a 35-year lease (with a tenant’s option to take a further lease for 35 years) with five-year rent reviews. A market rent review will take place at the end of the 35th year if Malmaison exercises its option to take the further 35-year lease.
Earlier this summer, MWB Group agreed the sale-and-leaseback of four other Malmaison hotels for £87m. The Charterhouse Square property in London was sold to funds managed by DEKA Immobilien, while the other three properties in Birmingham, Newcastle and Manchester were sold to funds managed by Legal & General Property.
Balfour-Lynn said: “This fifth sale and leaseback is enabling us to reduce Malmaison’s debt by more than £100m, which in today’s market we regard as extremely beneficial. At the same time, we are achieving our goal of maintaining a high proportion of freeholds within the portfolio of approximately 80% (by number), with the remainder made up of extremely long term operating leases.”
“The Malmaison and Hotel du Vin brands continue to show great resilience in the current economic climate and remain a firm favourite of our loyal customer base. We are now creating a platform to further expand our business both nationally and internationally.”
Savills advised MWB. Jones Lang LaSalle Hotels advised CIP Property.
annabel.dixon@estatesgazette.com
