Latest property news from BNP Paribas Real Estate UK, the leading property adviser
26 December 2011
Mayfair Capital PITCH’s in for Longford’s Travelodge in Teddington
Longford Securities & Equities Limited, advised by BNP Paribas Real Estate, has agreed the forward sale of its pre-let Travelodge development in Teddington in south west London for £9.4 million to Mayfair Capital’s Property Income Trust for Charities (PITCH).
Travelodge will take the hotel on a 25-year lease on the hotel with further income from three roof located mobile phone masts let to Vodafone, O2 and Everyone Everywhere. The sale price equates to an overall net initial yield of 6.34%.
The development is a conversion of a 1960s office building on the corner of High Street and Station Road and will provide a 113 bed budget hotel above two decks of car parking. Construction commenced earlier this year and is programmed to complete in May 2012 in time for the Olympics.
Longford is undertaking the development with funding from Investec Bank UK Limited and is constructing a 4,000 sq ft restaurant unit (with potential for residential accommodation above) on an adjacent site.
Richard Talbot-Williams of BNPP Real Estate, who advised the developer, says: “Longford is producing a quality product into an undersupplied market and the price achieved is a clear reflection of investor’s strong appetite for long term secure and inflation proofed income streams.”
James Thornton Fund Manager to the Property Income Trust for Charities commented “This will be a good core holding for our Charity Fund with income subject to upward only RIPX reviews on a long lease to Travelodge UK.”
Jones Lang Lasalle is acting for Mayfair Capital.