German investor Patrizia Immobilien has sold a building that houses a four-star hotel at an urban regeneration site in Manchester to a privately owned UK group.
German investor Patrizia Immobilien has sold a building that houses a four-star hotel at an urban regeneration site in Manchester to a privately owned UK group.
The investment volume for the 208-room hotel came to £30 mln (€39 mln), reflecting a yield of 4.85%. Spanish hospitality group Melia has taken a 25-year lease on the property and will operate it as Innside Manchester.
Patrizia purchased the hotel as part of its acquisition of the First Street site in Manchester in May 2015. The 8-hectare development site includes office, residential, retail and leisure components. The proceeds from the sale of the hotel will be re-invested in other parts of the project.
Rob Brook, head of portfolio management Patrizia UK & Ireland, commented: 'First Street continues to thrive and the sale of this quality hotel in the heart of the scheme is a testament to its success. Investor interest is high as this once under-utilised area of Manchester is blossoming into a hub for entertainment, working and living. With our asset management activities complete at the hotel, this is the first sale we have undertaken at First Street and now means we can recycle our balance sheet in new development management initiatives being pursued by Patrizia.'
