Whitbread has completed a £52m forward funding deal for its new hub by Premier Inn hotel in Shoreditch, East London.
The deal with an un-named UK pension fund, which was advised by Gerald Eve, follows three other recent forward funding deals on new hotels at Kings Cross, Westminster and Farringdon.
The Shoreditch hotel is already under construction and the yield to the pension fund on completion of the development is about 3.9%.
“We’re unlocking value from freehold assets through investment deals like this latest example at Shoreditch and ensuring we maximise return on invested capital,” said Simon Hobbs, estates director for Whitbread Hotels & Restaurants.
“By building excellent and well-located hotels and structuring deals around our proven Whitbread covenant, we can make our estate work hard for the benefit of our customers and our shareholders.”
Whitbread is looking to grow its Premier Inn and hub by Premier Inn estate to 85,000 UK and Ireland bedrooms by 2020, up from approximately 70,000 today. It is seeking more opportunities in London.
There are now six hub by Premier Inn hotels open in London plus two in Edinburgh.
BNP Paribas Real Estate advised Whitbread.