Iroko Zen has acquired a Premier Inn Hotel in Sunderland from Savills Investment Management for £7.8m in a deal representing a net initial yield of 7.65%.
The property, which is situated at 1-3 Hind Street in Sunderland city centre adjacent to Sunderland University, comprises a hotel offering 125 bedrooms and a Thyme Bar & Grill arranged over ground and five upper floors.
Premier Inn Hotels has a 25-year lease on the site, which expires in 2040, with a passing rent of £544,411 per annum and a parent guarantee from Whitbread Group. The tenant has a break option in year 10 and the lease has approximately 10.5 years term certain at the time of sale.
Peter Atkinson, director of investment at Savills, which acted for Savills IM on the deal, said: “It was a pleasure to close this deal to Iroko, in line with our client’s divestment strategy. As the second property we have sold to a French SCPI fund in the last few months, it’s clear that there is continued confidence in both Sunderland and the wider North East region for inward investment.”
Savills and Gowling WLG represented Savills Investment Management and Avison Young and Herbert Smith Freehills represented Iroko Zen on the transaction.
