First Street hotel sold for £30m
Patrizia Immobilien AG has sold the Melia INNSIDE Hotel at First Street, Manchester, for £30.45m to a privately owned UK group.
The sale of the 208-room four-star hotel has been agreed at a yield of 4.85% on a 25-year lease to Melia.
The UK arm of the European investment company Patrizia bought the hotel as part of its acquisition of the 20-acre mixed-use First Street site in Manchester in May 2015 from Ask. Ask is now the local development partner for the site.
A statement from Patrizia said that the sale would allow the company to reinvest capital in other development management initiatives. Patrizia is currently bringing forward a planning application for a 600-apartment private rented sector scheme at the southern end of First Street.
The PRS scheme will form the foundation of Patrizia’s plans for a dedicated UK PRS fund.
Rob Brook, head of portfolio management at Patrizia UK & Ireland, said: “First Street continues to thrive and the sale of this quality hotel in the heart of the scheme is a testament to its success. Investor interest is high as this once under-utilised area of Manchester is blossoming into hub for entertainment, working and living. With our asset management activities complete at the hotel, this is the first sale we have undertaken at First Street and now means we can recycle our balance sheet in new development management initiatives being pursued by Patrizia.”
