Whitbread completes £204M sale and leaseback of two London hotels
13 January 2017
Whitbread has completed the sale and leaseback of two hotels under development in London for £204M, reflecting a net initial yield of just under 4%.
M&G Investments has agreed to pay £101.8M for a 339-bed hub by Premier Inn due to open on Tothill Street, Westminster in October 2017. An initial payment of £73.7M will be followed by a balancing payment on completion of the hotel.
AVIVA Investors has agreed to pay £102.3M for a 326-bed Premier Inn being developed on West Smithfield near Farringdon station. An initial payment of £66.0M will be followed by a balancing payment on completion of the hotel, which is scheduled for December 2018.
Whitbread has agreed to lease both hotels under 25-year agreements with a passing rent of £4.20M for Tothill Street and £4.2M for West Smithfield.