Acquisition of Travelodge hotel in Liverpool, UK

17 December 2024

LEI: 213800BMY95CP6CYXK69

ALPHA REAL TRUST LIMITED ("ALPHA REAL TRUST" OR THE "COMPANY")

ACQUISITION OF A TRAVELODGE HOTEL IN LIVERPOOL, UNITED KINGDOM

ART announces it has acquired a hotel in Speke, Liverpool, United Kingdom for £6.5 million including acquisition costs.

The property is leased to Travelodge Hotels Limited, the United Kingdom's largest independent hotel brand with more than 600 hotels. The hotel has an 17 year unexpired lease term. Under the lease, the tenant is responsible for building maintenance and the passing rent of £0.49m p.a. has inflation linked adjustments, reflecting a yield of 7.6% p.a.

ART has acquired the asset for cash.

The 100-bedroom property is held long leasehold and is situated in Liverpool. The hotel was purpose built and constructed in 2005 in a well-connected location in close proximity to the John Lennon Airport.

Investment rationale

This acquisition offers the Company the potential to benefit from a long term, predictable, inflation-linked income stream whilst contributing additional diversification to ART's portfolio. In addition, the investment offers the potential for associated capital growth. 

The Company remains focused on asset-backed lending, debt investments and high return property investments in Western Europe that are capable of delivering strong risk adjusted cash flows.

For further information please contact:

Alpha Real Trust Limited

William Simpson, Chairman, Alpha Real Trust                      +44 (0) 1481 231 100

Brad Bauman, Joint Fund Manager, Alpha Real Trust          +44 (0) 20 7391 4700

Panmure Liberum, Broker to the Company

Atholl Tweedie                                                                           +44 (0) 20 7886 2500