Key Property Investments, the joint venture between St Modwen and Kuwaiti-based Salhia Real Estate, has sold four hotels for £16.4m to Rotch Property Group at a 6.75% yield.
The hotels formed part of the Refuge Assurance portfolio which Key Property acquired for £35m last year.
The hotels are: the Beaumont in Bolton; the Forte Post House in Carlisle; the Forte Post House in Luton and the Wynnstay Arms in Wrexham.
All of Rotch’s new investments are on covenants of more than 95 years which are reviewed every seven years to RPI.
The deal means Key Property holds 24 mainly retail investments from the Refuge Assurance portfolio, which has a running yield of 13%.
EGi News 06/03/98
