Redefine purchases 39,000 sq ft Enfield Travelodge for GBP10m
Redefine International, the income focused real estate investment trust, has purchased a purpose built Travelodge hotel at Lumina Park in Enfield, London for GBP10 million, representing a net initial yield of 5.5 per cent.
Constructed in 2012, the 39,000 sq ft hotel is let on a 33-year lease and provides 132 bedrooms across four floors along with a ground floor reception area, cafeteria and bar. The building also includes a separate retail unit at ground floor level, which is currently vacant.
Once let, the property’s net initial yield is expected to rise to approximately 6.4 per cent.
The hotel is close to both Enfield Town and Southbury rail stations, which offer easy access to London Liverpool Street, and Southgate underground station on the Piccadilly Line.
Lumina Park is a newly developed 100,000 sq ft mixed-use retail and industrial scheme located on the A10, within a short distance of the North Circular and Junction 25 of the M25. Existing occupiers include Jemca Toyota Motors, Big Yellow and Halfords Autocentre. Additional plots of land are available for phases of development at the park on a design and build basis.
Mike Watters, chief executive of Redefine International, says: “The acquisition provides a good opportunity to acquire long dated uncapped RPI income from a good quality covenant, in a sector we like and know extremely well. We are now beginning talks with a number of convenience supermarket operators to let the vacant retail unit, which will further improve the asset’s yield profile.”
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