Urban&Civic has sold the recently completed Hampton by Hilton hotel at Stansted Airport to LGIM Real Assets for £48.3m – 15% more than the 31 March valuation of the property.
The deal includes an extra £1.1m payable upon the operational performance of the hotel over the next two years.
Profit realised on cost is expected to be around £8.5m, with cash returned back into the business, after accounting for development project bank debt totalling more than £30m.
U&C said that proceeds from the sale would be invested back into its core purpose of creating new homes.
U&C chief executive Nigel Hugill said: “The sale of Stansted represents a strong outcome for the group, but the core reason for establishing Urban&Civic was to provide new housing choices and accelerate supply through master development.
“That involves creating environments in which people want to live and a delivery structure that encourages speed and quality from those housebuilders looking to expand output. The model can be seen to be working and is directly consistent with current government policy. We shall be going all-out from here.
Tom Roberts, head of strategic investment and regeneration at LGIM Real Assets, added: “The fundamentals of this hotel speak for themselves. Being the closest hotel to Stansted airport’s security gate, it offers convenience to its guests. The high quality of the new development and the Hampton by Hilton brand, under which the hotel operates, were also major factors in our investment considerations.
“Since its opening a few months ago, the occupancy figures have been encouraging and we believe this asset will prove to be an attractive addition to our portfolio.”
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