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February 2019

Travelodge Hotels Ltd & Costa Ltd, William Street, Workington, Cumbria, CA14 3YG

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under offer

The property is located in Workington town centre in proximity to the prime retail pitch.  The property comprises a new build 78 bedroom hotel with bar/cafe and integral Costa Coffee unit with drive-thru lane and a shared 94 space car park.  The hotel is pre-let to Travelodge Hotels Ltd for 25 years with 5 yearly reviews to compounded RPI collared at 1% and capped at 4% per annum.  The coffee unit is pre-let to Costa Ltd for 15 years with 5 yearly reviews to compounded RPI collared at 1% and capped at 3% per annum.  Total income £418,800 per annum.  The development has received full planning consent.  Practical completion November 2019.  Offers sought for the forward funding of the investment in excess of £6,830,000 which reflects a net initial yield of 5.75%, assuming full costs of purchase on the site of 6.65%.

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