Case Studies

Property Consulting Case Studies - BNP Paribas Real Estate UK  

Whitbread

Major sale & leaseback of £90.5 million portfolio of Premier Inn properties
The completion of the first two phases of a sale and leaseback programme for Whitbread, to expand their source of funds thereby supporting future growth.

  • Location 12 locations throughout England
  • Key figures 12 properties - £90.5 million
  • Contact Richard Talbot-Williams, +44 (0) 20 7338 4244

 

The results

  • The client benefited as they were able to deliver on their objectives to realise capital, and show considerable returns ahead of book value. Whitbread was the first major budget hotel operator who had attempted a sale and leaseback post credit crunch.  Phase 1 in 2009 was high profile and ground breaking in conceptual terms.  Phase 2 in 2011 was more finely targeted.  Both phases will have long term positive impact in supporting the client’s share price.

The Challenges

  • In the difficult economic climate the client chose to pursue a new strategy and realise equity from property as part of its overall approach to financing the company.  In addition it was important to the client that the selected properties were well received by the market and achieved a good price.

What we did

  • Our Corporate Property Strategy team advised the client on segmenting their portfolio and selecting which properties to include in the portfolios. 
  • We undertook a full marketing campaign. Whitbread required a high degree of certainty, having committed to this project. We therefore recommended that a full pre-sale due diligence exercise was undertaken, with surveys provided to the purchaser and a full virtual data room available to all interested parties.
  • We selected a party that satisfied the pricing expectations, and who was also an investor that the client could build a long term relationship with.
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