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Commercial Property News
Whitbread agree £36.65 million sale and leaseback deal on 5 Premier Inns
Whitbread, the country's biggest hotel and coffee shop operator, said it had agreed to sell five properties to M&G Investments for £36.65 million and lease them back.
M&G will enter into 25 year leases with Whitbread, who will continue to operate the properties as Premier Inn hotels with adjacent restaurants.
The properties will garner a net initial yield of around 5.5%, Whitbread said in a statement today.
Whitbread added it remained committed to having a predominantly freehold asset base while selectively using its property as an alternative source of funding for its pipeline of new developments.
Shares in Whitbread closed on Wednesday at 1,393 pence, valuing the business at £2.44 billion.
M&G will enter into 25 year leases with Whitbread, who will continue to operate the properties as Premier Inn hotels with adjacent restaurants.
The properties will garner a net initial yield of around 5.5%, Whitbread said in a statement today.
Whitbread added it remained committed to having a predominantly freehold asset base while selectively using its property as an alternative source of funding for its pipeline of new developments.
Shares in Whitbread closed on Wednesday at 1,393 pence, valuing the business at £2.44 billion.
Thu, 24th Dec 2009