Completed November 2013
Acting on behalf of international clients J D Partners was instructed to undertake an operator search & selection process for an office conversion opportunity for change of use to a 184 bedroom hotel in the heart of the City of London. Alongside the selection process we worked closely with the client, architects and project manager over several months to optimise the design of the hotel and to maximize the operating efficiency and investment value of the development.
Following the hotel operator selection process Whitbread Plc were selected as the preferred operator / tenant for their Premier Inn brand. A 25 year year unbroken lease was negotiated with indexed linked 5 yearly rent reviews. The hotel is currently under construction with completion scheduled for late summer 2013.
J D Partners advised Hotbed Portfolio Managers on the forward purchase of a new 95 bedroom Premier Inn Hotel in Camberley, Surrey. This was an off market acquisition from Spey Group, a private development company based on the Isle of Man. The purchase, at a price of £6.7 million represented a yield of 6.18% net of acquisition costs. The hotel is let to Premier Inn Hotels Limited on a 25 year lease with five yearly indexed rent reviews.
Our clients Hotbed (The UK's leading private investor syndicate) have since been acquired by Riverside Capital who is now the asset manager for the entire property portfolio of Hotbed Portfolio Mangers. The portfolio currently consists of 17 properties and has a current value of £180 million.
Acting on behalf of Aprirose Real Estate Investment Management, J D Partners brokered a forward sale and leaseback to Merlin Entertainments Group of a new hotel development at the Legoland Resort, Windsor. Merlin planned to develop a themed hotel concept on a 2.7 acre site within the grounds of their existing Legoland theme park and were seeking a funding solution.
J D Partners was able to secure a forward sale agreement with Aprirose which enabled Merlin to proceed with the development. Under the agreement, Merlin constructed the hotel and committed to a 35 year lease upon completion, renewable for a further 35 years at the end of the term. The forward sale was arranged at a price of £18.5 million, with completion of the purchase and opening of the hotel taking place in March 2012.
J D Partners was pleased to advise on the development funding of a new 188 bedroom hotel adjacent to the main access point into the Olympic Village. The developer required a forward sale and funding for the construction and J D Partners acted for Hotbed Portfolio Managers who acquired the investment by way of a full development funding for approximately £15.1m.
The property is let to Travelodge Hotels Limited on an unbroken 25 year lease with uncapped RPI uplifts, and was purchased at a net initial yield in excess of 6%. The investor syndicate provided significant equity funding and debt was provided by Clydesdale Bank.