Orchard Street Investment Management has completed the acquisition of the Manchester Arena Travelodge, on behalf of St James Place Property Unit Trust, from the BP Pension Fund.
The hotel was acquired through an off market transaction for a purchase price of GBP14.2 million.
Located on the former Boddington’s Brewery site in Manchester, the asset is let to Travelodge on 35 year lease with RPI linked reviews. The 200 bedroom hotel was developed by the BP Pension Fund and Marcus Worthington Properties in 2010.
Barney Rowe, Partner at Orchard Street, says: “The acquisition of this popular Travelodge asset in central Manchester enables us to benefit from exposure to inflation linked rental growth. This, together with the asset’s excellent location close to Manchester City Centre and adjacent to Manchester’s Phones 4U Arena, underlines our confidence in the asset’s long term reversionary potential.”