Investment Summary
- A £73.1m acquisition of three hotels, located in Birmingham, Gatwick and Hatfield.
- Tenant in each location – renowned UK hotel operator Jarvis, part of the world’s largest franchisor.
- Let on long FRI leases with 31 years unexpired at the time of acquisition.
The Properties
The portfolio of three good quality mid-market hotels, situated in Birmingham, Gatwick and Hatfield, offers a good geographical spread across Southern England and the Midlands.
Each hotel is situated in an attractive location within a well-established market and rent is based on annual turnover, a common arrangement in the hotel sector. Combined, they offer 449 letting bedrooms.
The properties are let to Jarvis, an experienced mid-market hotel operator with a portfolio of 46 Ramada Jarvis hotels.
Investment Structure
Each property was acquired through an individual SPV company and therefore, Stamp Duty Land Tax was not payable on the purchase price.
Investor equity raised by SI Limited Partnership No 5 totalled £14.8m, with the remaining funding provided by a loan from Nationwide Building Society.
The Information Memorandum for SI Limited Partnership No 5 can be accessed from our Introducers Area.