Lothbury completes £56m purchase of Prime Southwark Hotel

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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.

Important notice


This is the website of Lothbury Investment Management Limited of 1 Angel Lane, London, EC4R 3AB, United Kingdom, a company registered in England with registered number 04185370. Lothbury Investment Management Limited (or “LIM”) is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

Lothbury Investment Management Limited is the manager of the Lothbury Property Trust ("LPT") and the Lothbury Global Feeder LP ("LGF") (together, the “Funds”). LPT is a sub-fund of the Lothbury Global Institutional Funds, which is regulated by the Central Bank of Ireland. LGF was established as a limited partnership in Jersey under the Limited Partnerships (Jersey) Law 1994 through the filing of a declaration of limited partnership. The Funds are alternative investment funds (“AIFs”) for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) (the “Directive”). LIM has been appointed and acts as alternative investment fund manager (“AIFM”) in respect of the AIFs. For these purposes, LIM is authorised and regulated in the United Kingdom by the Financial Conduct Authority for the purposes of managing unauthorised AIFs (and for various other activities). The Funds are also unregulated collective investment schemes for the purposes of the United Kingdom Financial Services and Markets Act 2000 (the “Act”).

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The purpose of this website is to provide general information about Lothbury Investment Management Limited and the Funds. The Funds and Lothbury Global Feeder Limited but not any investors in these entities are clients of Lothbury Investment Management Limited. Nothing on this website is investment, tax or legal advice, nor is anything on this website a placement or offering to buy or sell units or any other investment. Tax treatment depends on individual circumstances and may be subject to change in the future. You should take your own independent investment, tax and legal advice as you think fit.

Please be aware that ultimately interests in the Funds may only be acquired by professional investors. A professional investor, for the purposes of LGF, is every investor that is considered, or may be treated, based on a request to LIM (as the AIFM), as a professional client or an eligible counterparty as those terms are used in exemption 7 of COB 4.12.4 of the Handbook of rules and guidance issued by the Financial Conduct Authority of the United Kingdom. A professional investor, for these purposes of LPT, is every investor that is considered, or may be treated based on a request to LIM (as the AIFM), as a professional client within the meaning of Annex II of the Markets in Financial Instruments Directive (2011/61/EC).

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