Alton Towers REIT set to complete Travelodge acquisition after £140m share placing
A REAL Estate investment trust, which owns the site of Staffordshire theme park Alton Towers, has made a successful share placing in its bid to acquire a portfolio of 55 Travelodge hotels – including some in the West Midlands.
The total deal is expected to cost Secure Income REIT around £196m but the new share offer will see the firm raise £140m from investors.
The remaining £60m will be secured through a fixed-rate seven year non-recourse credit facility from M&G.
The company now expects to complete the acquisition on October 28, 2016.
Martin Moore, Secure Income’s independent non-executive chairman, said: “The success of this placing is a clear reflection of the expected accretive impact that the acquisition of the Travelodge portfolio will have on both the company’s growth prospects and its dividend payments, which the board believes are highly compelling attributes for investors in a low interest rate and low growth environment.
“The Travelodge transaction is precisely in line with the strategy set out at IPO of growing the company through acquisitions which are highly complementary to SIR’s existing portfolio – in this case the assets being individually leased on full repairing and insuring terms with an exceptionally long weighted average unexpired term of 27 years and with upwards only, uncapped RPI linked rent reviews.”
He said that in addition to an expanded and more diverse portfolio, the company had also continued to broaden its shareholder base, which would provide strong support for future acquisition opportunities.
