Acting on behalf of OLIM, Franck-Steier Price have acquired a long let investment at Chieveley Services, Newbury.
The property is a 126 bed hotel which forms part of the services at the M4/A34 junction.
The property is let to Moto Hospitality Ltd (with a guarantee from Compass Group plc) on a 35 year FRI lease from October 2002. The passing rent is £315,768 per annum. There are 5 yearly rent reviews to RPI with a collar & cap of 3-7.5%.
The hotel is underlet to Travelodge Hotels Ltd on a co-terminus lease.
The investment was acquired for £6,960,000, reflecting an initial yield of 4.25%. Kimmre acted for the vendor.