Lothbury Investment Management has completed the purchase of the Travelodge hotel in London for £53.8 mln (€63.8 mln) as part of a segregated mandate for a major UK pension fund.
The property has been purchased with 30 unexpired years on the lease. Dating from 2008, the building comprises 202 bedrooms with three retail units at ground level.
‘Its location is well established but also rapidly evolving, so will provide the fund with attractive longer-term redevelopment opportunities,’ said Mike Toft, senior fund manager and executive director of Lothbury Investment Management.
‘This is an important purchase for the fund. With 30 years remaining and reviews linked to RPI, with no cap, it has a very attractive lease structure and excellent residual value that fits well within the portfolio of prime assets held for this major UK pension fund,’ Toft concluded.