Property investor expands portfolio with £4.6m hotel acquisition
A Warwickshire-based property investor has acquired a Midlands hotel in a £4.66m deal.
Cordatus Property Trust, which has an office in Stratford-upon-Avon, has acquired the 71-bedroom Travelodge Hotel in Tewkesbury from the trustees of the Alfred Hopkins Pension Fund (c/o LaSalle Investment Management).
The £4,665,000 acquisition reflects a yield of around 5.50% on a long unexpired lease to Travelodge with 27.6 years remaining.
The property trust is a programmatic venture between CBRE Global Investment Partners (CBRE GIP) and Cordatus Real Estate. The deal is the first hotel investment within the fund’s portfolio of primarily retail and industrial assets and adds diversity to the mix.
Tom Laidlaw, of Cordatus, said: “We are building an attractive portfolio of assets within the Cordatus Property Trust and this first hotel investment offers strong returns and regular index linked uplifts within a long lease.
“This is our 22nd investment since establishing the Trust and we have now deployed in excess of £100m into a balanced portfolio of high-returning assets.”
Lewis Ellis acted for Cordatus and Gerald Eve acted for the vendor.
Cordatus has purchased the freehold for the hotel and the lease involves five-yearly, uncapped, RPI-linked rent reviews.
The three-storey building is situated close to Junction 9 of the M5 and the site includes 70 car parking spaces.
Cordatus Real Estate is fund manager for the property trust, which focuses on sub-£15m properties across all sectors and regions of the UK. The fund has initial capital to invest of £150m.
In addition to Stratford-upon-Avon, Cordatus also has offices in London and Edinburgh.
Its five property directors are Tom Laidlaw, Michael Cunningham, Mike Channing, Gavin Munn and Paul Blyth, who have a combined experience of 130 years.
