French fund buys Preston Premier Inn for £9.75m
Epsicap REIM has acquired the 140-bed hotel from Seneca Property.
Seneca has made a profit on the Premier Inn in short order; the investor acquired the 140-bed Fox Street building from Kames Capital for £6.8m in 2023 and selling for around £3m more.
The seven-storey property was developed in 2011 at a reported cost of around £23m.
Premier Inn signed a 25-year lease that same year. The hotel chain accounts for 91% of the asset’s total income, generating £725,000 a year in rent.
The building’s ground floor occupiers include German Doner Kebab, clothing retailer Hollywood Exports and Kaspa’s Desserts.
Premier Inn’s lease runs until 2036 and has a built-in break option in 2031.
Jeff Morton, chief executive of Seneca Property, said: “This transaction underscores our commitment to acquiring assets with strong fundamentals and delivering significant value for our investors.
“The Premier Inn Preston has been an excellent fit within our portfolio, and its sale reflects both its intrinsic quality and the continued demand for well-located hospitality assets. We are pleased to have achieved a positive outcome for all parties involved.”
Epsicap was contacted for comment.
The deal marks the continuation of the French investor’s recent UK acquisition spree, which has seen offices in Aberdeen and retail in Leeds added it its portfolio.
CBRE advised Seneca with TLT advising on legals. PK3 acted for Epsicap REIM.
