Patrizia has sold its First Street hotel asset in Manchester for £30m.
The site sold the Melia Hotel building to a private investor at a yield of 4.85% based on a 25-year lease to the hotel group.
The 208-bedroom hotel, operating as Innside Manchester, was bought by Patrizia in May 2015 as part of the 20-acre site First Street asset, which included offices, residential, retail and leisure components.
Rob Brook, head of portfolio management Patrizia UK & Ireland, said: “First Street continues to thrive and the sale of this quality hotel in the heart of the scheme is a testament to its success. Investor interest is high as this once under-utilised area of Manchester is blossoming into a hub for entertainment, working and living. With our asset management activities complete at the hotel, this is the first sale we have undertaken at First Street and now means we can recycle our balance sheet in new development management initiatives being pursued by Patrizia.”
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