By Richard Hook2019-01-24T13:20:00
M&G Investments has acquired the long leasehold interest of a development site in London’s Paddington with plans to develop a 620-bed hotel complex pre-let to Premier Inn and aparthotel operator StayCity.
M&G will finance the construction of the £203m hotel complex, which is expected to open by 2021. The capital will be provided through the £4.1bn M&G Secured Property Income Fund and used to develop the scheme, which also has provision for a 27,000 sq ft education facility, landscaping and open space.
Under the terms of the deal, Premier Inn owner Whitbread and Staycity will each take 30-year leases on five yearly inflation-linked rent reviews, operating independently with 60% and 40% of the rooms respectively.
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