March 19, 2014
LaSalle Investment Management, on behalf of Coal Pension Properties Ltd, has purchased a gateway leisure development at Hemel Hempstead for £7.65 million.
The scheme is let to Travelodge, Toby Carvery, Domino Pizza and Subway at a rental of £545,000 pa, representing an initial yield of 6.74%. HSM concluded the deal for LaSalle Investment Management within three weeks.
Only 1 mile from the M1 and close to the Warner Bros Harry Potter Studio tour and an alpine condition real ski slope, the Travelodge hotel has been running at close to full capacity since opening. There is significant planned investment in Hemel Hempstead town centre and additional phases of development in the immediate area, which will further enhance this gateway location.
Tim Morgan of HSM comments, “The average unexpired lease term is almost 24 years and this is a well established leisure development in a good location, offering excellent growth potential off a low room rate of only £3,850 pa. Over 200,000 people live within 6 miles of the development and this location, with its proximity to both the town centre and the motorway, services both a local and regional requirement .”
Kier Ventures were advised by Fawcett Mead, LaSalle Investment Management by HSM.