LONDON, UK: Alpha Real Trust Limited (ART) announced it has acquired a hotel in Lowestoft, United Kingdom for £3.1 million including acquisition costs. ART has acquired the asset for cash.
The property is leased to Travelodge Hotels Limited, the United Kingdom’s largest independent hotel brand with more than 590 hotels. The hotel has an 18 year unexpired lease term. Under the lease, the tenant is responsible for building maintenance and the passing rent of £0.2m p.a. has inflation linked adjustments, reflecting a yield of 6.2% p.a.
The 47-bedroom property is held freehold and occupies a site of 1.08 acres in Lowestoft, a well-established and well connected area located in close proximity to the A47 which runs to Norwich.
This acquisition offers the Company the potential to benefit from a long term, predictable, inflation-linked income stream whilst contributing additional diversification to ART’s portfolio. In addition, the investment offers the potential for associated capital growth.