Charity completes £11m deal to add its first hotel to property portfolio
A Chester hotel has been acquired by Derwent Estates, acting on behalf of the Albert Gubay Charitable Foundation (AGCF), in an £11.5m off-market deal.
The 112-bed, four storey hotel, with ground-level retail, is operated by Travelodge and is located on the corner of Lower Bridge Street and Pepper Street in Chester city centre.
The building is also home to a 4,000 sq ft Tesco convenience store on the ground and part of the basement floors.
Jonathan Black, Property Director at Derwent Estates, said: “This acquisition marks a significant milestone for the charity, as it is the first hotel addition to the AGCF property portfolio.
“Diversifying the charity’s portfolio has long been a strategic goal and this opportunity perfectly aligns with that vision.”
He added: “The property is situated in a prime location for the use and also features two strong covenants secured by long term leases.”
Christopher Dee acted on behalf of Derwent Estates.
The vendor, a FTSE 100 pension fund was represented by Clay Street.
The charity portfolio comprises more than 2.8 million sq ft of commercial property, including some 2.1 million sq ft of retail and leisure space.
The foundation’s aim is to support charities across England and Wales, the Isle of Man, and the Republic of Ireland, ensuring that valuable projects are provided with funding to develop and maintain their inspiring work.
Since it received its assets in 2016, the foundation has awarded more than 600 grants totalling in excess of £68m to registered charities.
