Whitbread, the UK's largest hotel and restaurant group, has announced that it has exchanged agreements with M&G Investments for the sale-and-leaseback divestment of five properties operating as Premier Inn and adjacent restaurants.
Whitbread, the UK's largest hotel and restaurant group, has announced that it has exchanged agreements with M&G Investments for the sale-and-leaseback divestment of five properties operating as Premier Inn and adjacent restaurants.
On completion, which is expected in January 2010, M&G Investments will pay £36.65 mln (EUR 40 mln) in cash for the properties and enter into 25-year leases with Whitbread, which will continue to operate the properties. This represents a net initial yield of around 5.5%.
Whitbread said it remains committed to having a predominantly freehold asset base, while selectively using its property as an alternative source of funding for its pipeline of new developments.
