GCW has completed its latest piece of work for a local authority with the purchase of a hotel in Hemel Hempstead for South Bucks District Council.
The hotel is a strategically-located town centre site and is let to Travelodge on a lease until 2033. The acquisition at £5.125 million reflects a net initial yield of 4.8% with uncapped RPI uplifts.
“The underlying site value was underpinned by the price paid. Whilst it is currently a successful hotel, we felt that the asset could also lend itself to conversion for offices or Build to Rent residential, thereby future-proofing the asset into the future. The deal reflects the competition in the market for assets with strong fundamentals, particularly given the uncertainty in the wider market” says GCW director Fiona Nichols.
“The asset was being sold by receivers and attracted significant interest. Securely let assets such as these are certainly attractive to local authorities with the additional benefit of providing economic advantage to people living within the catchment” she adds.
South Bucks was able to exchange contracts on a very tight timetable and is now seeking other interesting opportunities via its wholly-owned purchasing vehicle.