Landsec has completed the sale of its entire hotel portfolio to real estate funds managed by Ares Management and operating partner EQ Group for £400m.
The portfolio, which generated net income of £28.4m in the last financial year, comprises 21 assets and is fully let to AccortInvest.
The income is 100% turnover-linked with a lease contract expiring in 2091 and 12-yearly tenant-only break options.
The company said the disposal was “in line with its strategy to release capital from sectors in which it does not have scale and to focus its resources on areas where it has genuine competitive advantage”.
Landsec has also completed the disposal of £217m of other non-core assets since the end of September, including its two smallest retail outlets, one retail park, two leisure assets and a local shopping centre in London. Combined, these transactions bring Landsec’s total disposals since September 2023 to £617m.
Mark Allan, chief executive of Landsec, said: “We said in late 2020 that our focus would be on areas where we have a genuine competitive advantage. In line with that strategy, we have continued to recycle capital out of assets where our ability to add further value is limited. The sale of our hotel portfolio and other non-core assets will further strengthen our balance sheet and leave us well placed to take advantage of opportunities in the market as they arise.”
