Premier Inn changes hands in above-valuation sale
THE Premier Inn hotel in Dudley has been sold for £4.45m.
Property investors Custodian REIT has done a deal with an unnamed buyer but stressed this sale was not a reaction to pressures felt from investors.
Richard Shepherd-Cross, managing director of the company’s external fund manager Custodian Capital, said: “Contrary to many open-ended property funds, a number of which have halted redemptions to allow them time to sell properties to meet their redemption obligations, this sale is part of our normal asset management activity.”
He pointed to a valuation done less than four months ago which priced the property on Castlegate Business and Leisure Park at £4.11m.
Mr Shepherd-Cross added: “We are delighted to have crystallised an 8.3% valuation gain, capitalising on market demand for long-term secure income and securing a price reflecting a net initial yield of 5.0%.
“We expect to redeploy the sale proceeds on our committed pipeline, providing better long-term growth potential and a higher running yield to enhance shareholder returns”.
The property was part of the initial portfolio acquired in 2014, when Custodian listed on the London Stock Exchange. The 22,317 sq ft hotel is let to Premier Inn Hotels until 2038.
