Hinton Developments, represented by FSP, has exchanged contracts with BMO Real Estate, on the forward funding of a new 97 bed Travelodge Hotel and Costa Coffee Drive Thru unit on Harlequin Park, Emersons Green.
Construction on the new hotel and Drive Thru unit has commenced with practical completion expected in December 2020.
The hotel is pre-let to Travelodge Hotels Ltd for a term of 25 years from practical completion. The lease is subject to 5 yearly upward only reviews to CPI collared at 1% and capped at 4% per annum compounded. The commencing rent will be £533,250 per annum (£5,925 per room).
The drive-thru unit is pre-let to Costa Ltd for a term of 15 years from practical completion. The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded. The commencing rent will be £80,000 per annum (£44.44 per sq.ft).
The development funding sold for £11,619,000 which reflected a net initial yield of 4.95%.