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Jones Lang LaSalle completes two acquisitions worth £48 million in London and a disposal for £9.2 million
London, 21st August 2013 - Jones Lang LaSalle’s Capital Markets Alternative Investment team and Hotels & Hospitality Group has announced the completion of two hotel funding acquisitions of Premier Inn buildings in central London and the forward funding sale of a Premier Inn in Winchester.
Acting on behalf of Standard Life Investment, the team acquired Premier Inn Goodman’s Fields, Aldgate. The proposed 250 bed hotel was bought on a forward commitment basis at a price of £39 million reflecting a net initial yield of 5.50%. In addition, on behalf of CBRE Global Investors, the team has acquired a 90 bed Premier Inn in Dalston on a forward funding basis at a price of £9 million which reflects a net initial yield of 5.65%
Outside of the capital, Jones Lang LaSalle has completed on a £9.2 million sale of a Premier Inn forward funding in Winchester on behalf of Reef Estates. The 101 bed hotel was sold to AXA Real Estate at a net initial yield of 5.45% According to Jones Lang LaSalle, the price achieved reflects a new benchmark for the funding of a regional Premier Inn.
Will Duffey, Senior Vice President in Jones Lang LaSalle’s Hotels and Hospitality Group, commented: ”These transactions emphasise the strong investor demand for the Whitbread covenant. Premier Inn continues to go from strength to strength, with the aim for an estate of 75,000 bedrooms by 2018.
In addition, they have recently launched their new hotel product called the Hub by Premier Inn, and have over 1,000 bedrooms committed to within London, with their first hotel under construction. We act jointly on behalf of Whitbread in assisting them on their new acquisitions for both brands.”
Martin Le Grice, Director in Jones Lang LaSalle’s Capital Markets Alternative Investment team, added: “Our recent successes in the leased hotel market is just one of the alternative property sectors in which we operate. Investors continue to seek long term secure product with inflation proof indexation rent reviews and the alternative sector including student accommodation, healthcare as well as leased hotels is able to satisfy the market’s requirements.”
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