Lothbury Investment Management has completed the acquisition of the Travelodge hotel in Union Street, Southwark, London for £56.3m, as part of a segregated mandate for a major UK pension fund.
The Travelodge London Central Southwark hotel is one of the top performing hotels in the Travelodge portfolio and has been purchased by clients of Lothbury with 30-years unexpired on the lease and rent reviews linked to RPI.
The freehold property comprises 202 bedrooms with three retail/restaurant units totalling 7,250 sq ft at ground level. The building was constructed in 2008.
Mike Toft, Senior Fund Manager and Executive Director of Lothbury Investment Management, said: “This is an important purchase for the fund. With 30 years remaining and reviews linked to RPI, with no cap, it has a very attractive lease structure and excellent residual value that fits well within the portfolio of prime assets held for this major UK pension fund. Its location next to Southwark Underground station and close to the South Bank of the River Thames is well established but also rapidly evolving, so will provide the fund with attractive longer term redevelopment opportunities.”
The purchase is part of Lothbury Investment Management’s strategy for this mandate to acquire prime assets, with index-linked rent reviews and strong residual or alternative use values.
Lothbury was advised by Tydus Real Estate and NJB Hotels & Leisure, and the vendor was advised by CBRE.
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