LondonMetric Property Plc (LON:LMP) has announced the acquisition of a further nine Premier Inn hotels for £89.0 million, reflecting a NIY of 5.3% which will compound over the long lease term.
The sale and leaseback portfolio is let on new 30-year leases and has been acquired from Whitbread PLC. It generates an annual rent of £5.0 million with five-yearly CPI linked rent reviews and very strong levels of rent cover.
The mature and purpose-built hotels totalling 955 bedrooms are South East focused and located at Southampton Airport, Kings Langley, Milton Keynes, Poole, Colchester, Fareham, Waltham Abbey, Chipping Norton, and Warwick.
Through their Premier Inn brand, Whitbread is now LondonMetric’s fourth largest occupier, contributing £11.3 million of annual rent and accounting for 2.7% of LondonMetric’s total rent.
Andrew Jones, Chief Executive of LondonMetric, commented:
“This transaction adds high quality and mission critical assets that generate a long, strong and growing NNN income in a sector that continues to benefit from evolving consumer preferences for travel, entertainment and experience. It follows on from our recent £44 million hotel portfolio acquisition from Whitbread and increases our ownership to 22 modern Premier Inn hotels.
