A Hong Kong investor has purchased the Liverpool Street Station Travelodge building in London for a fee of £42m.
Savills completed the deal on behalf of YT Realty Group Ltd (Hong Kong), which reflects a net initial yield of 4.84%.
The 142-bedroom hotel arranged over seven floors is let to Travelodge Hotels Ltd with an unexpired term of 33 years and generates £2,069,144 per annum.
The investment also includes an underletting to the Post Office for 20 years from 2001 at a peppercorn rent.
Phillip Garmon-Jones of the cross border investment team at Savills in Hong Kong, said: “We are delighted to have assisted YT Realty in its first independent UK acquisition.
“The investment benefits from long term income as well as a natural inflation hedge with upside potential in the future.
“The deal highlights London’s continuing appeal to Asian investors.”
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