Fishron Developments, a joint venture between Lamron Estates and T A Fisher, has completed the sale of a new 81-bed Premier Inn hotel in the centre of Basingstoke, Hampshire.
The sale to CBRE Global Investors for a purchase price of £7,660,000 reflects a net initial yield of 4.75%.
Premier Inn Hotels Ltd signed a 25-year lease on the hotel, with an option to break at year 20, on completion of the development in June this year. The commencing rental is £385,000 pa with uplifts on a five-yearly basis to CPI, capped at 4% pa.
Paul Griffiths of BNP Paribas Real Estate, who acted for Fishron, commented: “We are delighted to have concluded this off-market transaction to CBRE Global Investors.
“New Premier Inn hotels with a term certain of 20-years on the lease are rare in the southeast of the UK at the moment. The completion of the development was well timed for sale into a market where strong demand exists from pension funds looking for long-term, indexed income.”
Chris Freer-Smith acted for the buyer.