UK Commercial Property Trust has bought its first hotel, the Maldron Hotel in Newcastle, for £32m from McAleer & Rush.
The assets is let to Dalata on a 35-year lease with no break options and is expected to deliver a yield on cost of 5.4%.
UKCPT, which is managed by Standard life Investments, has also sold one of its smallest assets, a 25,802 sq ft office in Aberdeen for £6.5m at a premium to book value.
Will Fulton, fund manager at Standard Life Investments, said: “These transactions demonstrate our continued efforts to increase the portfolio’s exposure to high-quality assets with the potential for income and capital growth.
“As one strand of this strategy we have been assessing opportunities in the alternative sectors as a means to enhance longer-term income and dividend cover.”
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