CORDATUS ACQUIRES GOSFORTH TRAVELODGE HOTEL IN £4.7M DEAL
25 January 2018
Cordatus Property Trust (“CPT”) has acquired a 53-bedroom Travelodge Hotel in Gosforth, Newcastle upon Tyne as its latest addition to the fund in an off-market purchase.
The Cordatus Property Trust is a programmatic venture between CBRE Global Investment Partners (CBRE GIP) and Cordatus Real Estate (Cordatus). Cordatus purchased the hotel at Rotary Way, Gosforth, from Compass Estate Co (a private syndicate) paying £4,650,000. The price reflects a net initial yield of approximately 5.25%.
In line with its development of a balanced portfolio spanning freehold/leasehold assets and locations right across the UK, Cordatus has acquired the long leasehold on the Gosforth site which is let to Travelodge on a 25-year lease with RPI linked rent reviews, and trades as a successful hotel under the brand’s management.
Andrew Murray of Cordatus said: “This latest acquisition adds another well-let asset with an attractive income stream into our expanding portfolio as we look to continue deploying capital into assets with strong property fundamentals. Our expertise is in acquiring and asset managing investments where we can apply proven investment knowledge to deliver secure and above-market returns over the longer term.”
Cordatus Property trust has invested in 24 assets since launching in 2015, committing in excess of £100m into a balanced portfolio of high-returning assets. Also in the North East, Cordatus acquired the Park View Shopping Centre in Whitley Bay (mid 2016) which it is similarly targeting for long-term returns delivered via its proven asset management skills.
Ereira Mendoza and NJB Hotels & Leisure Property acted for Cordatus. Heywood & Partners acted for the vendor. Cordatus has purchased the long leasehold for the Gosforth Travelodge site. The lease involves 5-yearly, uncapped, RPI-linked rent reviews.
The two-storey, 53-bedroom hotel is arranged over ground and one upper floor on a 0.19 acre site. The site has shared use of a 90-space car park which is accessed via Rotary Way (A1056).
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