LondonMetric scoops Manchester’s Clayton under £51m Threadneedle deal
Columbia Threadneedle Investments has sold two assets from its Trilogy portfolio, including the 365-room Clayton airport hotel, which has city council backing for a further 214-key extension.
LondonMetric’s new hotel generates £1.07m of rent a year with RPI linked reviews.
Ireland-based Dalata Hotel Group owns the Clayton brand. Manchester City Council permitted Dalata to build a nine-storey, 216-bed expansion to the airport hotel off Outwood Lane in April 2024.
A 450,000 sq ft logistics warehouse at East Midlands airport, which is let to UPS at a rent of more than £1m, comprised the second part of the deal.
Both the assets, acquired for a combined £51m, are let on long leases with a WAULT of 100 years. They generate £2.2m of rent a year, which is substantially below market rent of £8.2m, with a running yield of 5% over the next few years.
The wider £73m transaction included £22m of disposals, comprising five former Urban Logistics REIT sheds in Leigh, Telford, Sheffield, and Northampton, primarily let to XPO and DX, and a warehouse in Redditch.
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Andrew Jones, chief executive of LondonMetric, said: “We have continued to monetise assets acquired through takeovers and have now sold eight Urban Logistics REIT assets at strong prices, reflecting the ongoing demand for smaller lot sizes.”
Urban Logistics REIT was acquired by LondonMetric Property in June 2025.
Jones added: “The proceeds from these and previous sales have been successfully reinvested into high-quality, NNN, and mission-critical assets, which are strongly underpinned by significant reversion and materially higher values achievable on vacant possession.”
LondonMetric has confirmed that the £22m sales, sold 5% above the acquisition price, have been reinvested into assets with high reversionary potential.
