Secure Income REIT (SIR) said it has raised £140 mln (€160.7 mln) in a 'very heavily over-subscribed share placing' to support its £196 mln Travelodge acquisition.
The acquisition of 55 Travelodge Hotels in the UK, announced in September, was conditional on a successful share placement.
In addition to the proceeds from the placement, the £196.2 mln acquisition cost will be financed by a new £60 mln secured fixed-rate, seven-year non-recourse credit facility from M&G.
The hotel portfolio was acquired off market at a 7% initial yield, increasing SIR’s rents by an expected £13.7 mln upon acquisition.
The company expects to complete the acquisition on 28 October 2016.
