CBRE Hotels Sell Bristol Investment to Clients of Invista
On the instructions of Mr David John Dunckley, Mr Joseph Peter Francis McLean and Mr David Thurgood of Grant Thornton UK LLP, Joint Administrators of Pedersen (UK)
Limited (in Administration), CBRE Hotels has sold the Novotel Bristol Centre hotel to clients of Invista Real Estate Investment Management for a price of £14.5 million, reflecting a net initial yield in excess of 7.0%.
CBRE Hotels and Eversheds LLP lawyers acted on behalf of the Administrator whilst Lawson & Partners LLP and DLA Piper LLP acted for the purchaser.
The hotel is operated on a 19 year lease without tenant breaks by Accor under the internationally recognised Novotel brand and the operation of the hotel is therefore unaffected by the sale.
The hotel occupies a prime city centre position in the Temple District close to Bristol Temple Meads mainline railway station. The purpose-built, 4-star hotel comprises 131 bedrooms, excellent food and beverage outlets including the Elements restaurant as well as leisure and conference facilities.
Craig Millward, Director of CBRE Hotels EMEA commented: “The opportunity to acquire a secure base rental income guaranteed by Accor S.A. combined with the potential for additional performance rent linked to the revenue of the hotel generated considerable interest from both institutional buyers and high net worth individuals in the investment community”.
Nick Montgomery, Head of UK Commercial at Invista commented: “We have acquired a 19 year lease to a strong tenant at an above average yield in excess of 7.0%. The hotel has good fundamentals and the lease structure provides potential for future growth. As a cash buyer we were able to complete the acquisition within two weeks from agreeing terms”.