QHotels sites snapped up after duo of £19m deals

Property investment company LXi REIT has acquired two QHotels group sites, in two deals with £19m apiece.

The acquisition of the four-star Marstons Hotels (owned by Leeds-based QHotels Holdings) site in Cambridge, the Cambridge Belfry Hotel, was valued at £18.53m.

The second deal, announced earlier this year and just completed, was a £19.1m deal for the Q-Park car park at Rockingham Street, Sheffield.

The hotel deal reflects a net initial yield of 6.1% on the asset acquisition (net of acquisition costs to the Company).

The lease has an unexpired term of over 22 years (expiring in May 2039), without a break. It was purpose-built in 2004 and its 120 rooms recently refurbished.

It is situated within the 750,000 sq ft Cambourne Business Park, home to numerous large corporates including Citrix, Global Graphics, Convergys, Regus and IP Access.

Simon Lee, Partner of LXi REIT Advisors Limited, commented: “We are pleased to have acquired the Cambridge Belfry Hotel, which is our sixth acquisition since the Company’s Admission on 27 February 2017. In addition to benefitting from a long, index-linked lease to a strong tenant covenant, the hotel trades strongly and is in a sought-after Cambridge location and, as a result, its vacant possession value is in excess of the purchase price.”

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