Whitbread has completed the sale and leaseback of two London Premier Inn hotel sites for a total of £204.7m to M&G Investments and Aviva Investors.
M&G Investments will pay £101.8m for the 339-room Premier Inn hotel in Tothill Street, SW1, which is due to open in October 2017. Aviva Investors has agreed to pay £102.9m for a 326-room Premier Inn in West Smithfield, Farringdon, which is due to open in December 2018.
Both deals are in exchange for a 25-year lease agreement. The price agreed represents a net initial yield of just under 4% for the two assets, both of which have an annual rent of £4.2m.
Whitbread said the transactions are in line with its strategy to carry out “modest sale and leasebacks” in order to recycle capital into new growth opportunities.
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