DTZ Investors has completed the on the purchase of Combined and International House, two 10-storey buildings and a shopping mall comprising 144,200 sq ft of hotel and retail accommodation plus a 366-space multi-storey car park. The two hotels are let to Premier Inn and Travelodge, with retail units let to Argos, Poundland and Aldi. The car park is leased to NCP.
The acquisition provides the fund with a well-diversified income stream, with 55 per cent of the income being derived from the two hotels, 35 per cent from the retail units and 10 per cent from the car park. Future income growth is also well diversified, with 65 per cent of the income on index linked review patterns, 20 per cent of the income on fixed uplifts and 15 per cent on open market reviews.
Fund manager Peter O’Gorman said: “This asset will deliver a sustainable income stream, while providing good growth potential at minimal risk. With a WAULT of 17.2 years and 85 per cent of the income on fixed or indexed linked reviews, this asset will provide defensive and reliable returns for the fund.”
BNP Real Estate acted for the vendor and Robinson Webster for the purchaser.