Urban&Civic has sold the recently completed Hampton by Hilton hotel at Stansted Airport to LGIM Real Assets (Legal & General) for a minimum consideration of £48.3 mln (€54 mln).
Legal & General will pay an additional sum of up to £1.1 mln, depending upon operational performance of the hotel over the next two years.
The new hotel opened for trading in late July 2017 and is one of only two that are on-terminal at Stansted. The hotel is already performing well, with initial occupancy levels and achieved room rates running above pre-opening forecasts, the vendor said.
Urban&Civic said that the minimum consideration represents a projected yield on stabilised EBITDA three years forward of 6.75% and is 15% higher than the EPRA valuation of the completed asset as of end March 2017. Profit realised on actual cost is expected to be in the order of £8.5 mln, it added.
The company will reinvest the proceeds from the sale amounting to over £30 mln, into the development of strategic housing projects.
Commenting upon the sale Nigel Hugill, Chief Executive, said: 'The sale of Stansted represents an obviously strong outcome for the Group but the core reason for establishing Urban&Civic was to provide new housing choices and accelerate supply through Master Development.'
Tom Roberts, head of strategic investment and regeneration at LGIM Real Assets, said: 'Since its opening a few months ago, the occupancy figures have been very encouraging and we strongly believe this asset will prove to be an attractive addition to our portfolio.'
