A package of properties once owned by a collapsed Irish management company have been put on the market with a combined asking price of £132.3m.
The triple-asset portfolio includes two Scottish sites — the Radisson Blu Hotel on Edinburgh’s Royal Mile and The Quay Leisure Park in Glasgow — and the Park Inn by Radisson in Manchester. The assets are being offered as individual lots or as a complete portfolio.
With a guide price of £59m, the 238-bedroom Radisson Blu in Scotland’s capital is the unrivalled prize in the offering. The hotel has a restaurant, bar, leisure facilities and conference rooms and the sale would also include a youth hostel and adjoining properties.
Joint agents CBRE and Jones Lang LaSalle (JLL) claim the entire Edinburgh package generates around £3.55m in annual rent with the hotel let to Rezidor for the next 24 years.
In Glasgow, The Quay Leisure Park has been valued at £53.3m. The site, on the banks of the Clyde, contains 13 leisure units and an Ibis hotel. Existing anchor tenants include Odeon Cinemas, the Original Bowling Company, Alea and Mecca Bingo. There are also restaurants operated by Ashoka, Nando’s and Chiquito.
The 252-bedroom Park Inn by Radisson hotel in Cheetham Hill Road, Manchester, is also let to Rezidor with 20 years left to run on its lease. It contains a restaurant, bar, conference rooms and leisure facilities and has an asking price of £20m.
Kerr Young is director of hotels and hospitality at JLL. “This portfolio gives investors the opportunity to acquire not only a secure income stream with great covenant strength, but also prime real estate in two key UK cities,” he said.
Paul Collins, director of CBRE Hotels, added: “We are seeing substantial trading growth in the Edinburgh and Manchester hotel markets and this will enhance the future rental income for the buyer of these rarely available hotels which are on performance leases.”
