LONDON - Alpha Real Trust Limited has expanded its portfolio through the acquisition of a Travelodge hotel located in Speke, Liverpool, for a total of £6.5 million, which includes acquisition costs. The transaction was conducted in cash, as announced on December 17, 2024.
The property, featuring 100 bedrooms, is under a long leasehold and occupies a strategic position near John Lennon Airport. The hotel, built in 2005, is part of Travelodge Hotels Limited, which operates as the largest independent hotel brand in the United Kingdom (TADAWUL:4280) with a network of over 600 hotels.
The hotel in question has a lease term of 17 years remaining and is leased to Travelodge Hotels Limited. The tenant is responsible for the building's maintenance. The lease includes an annual passing rent of £0.49 million, which is subject to inflation-linked adjustments and reflects a yield of 7.6% per annum.
Alpha Real Trust cited the acquisition's potential to provide a long-term, predictable income stream that is linked to inflation as a key investment rationale. The addition of the hotel is expected to contribute to the diversification of the company's portfolio. Alpha Real Trust's strategy remains centered on asset-backed lending, debt investments, and high-return property investments in Western Europe that offer strong risk-adjusted cash flows.
The acquisition of the Liverpool Travelodge hotel aligns with the company's focus on enhancing its portfolio with assets that promise stable and inflation-adjusted returns. The information is based on a press release statement.
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