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Reversionary investment with future development potential

York, United KingdomUnlock address

85%

£8.200.000

Hotels & Resorts

#14309

Core+

2 Feb 2024

Property Details

Broker

Deactivated

4.00 %

90

91,111

Freehold

Lease

meeting room, dining area

X

Fees

0.00 %

0.50 %

0.00 %

0.50 %

Investment Overview

The property comprises a purpose built, 90 bedroom (c.35,240 sq ft) hotel (arranged over four floors) with a 7,524 sq ft pub on the ground floor. The hotel element is let with approximately 13 years unexpired with 5 yearly rent reviews to the higher of a) 50% of OMV or b) annual increases of 3% per annum compounded. The retail element is let with approximately 3 years unexpired and currently let at a conservative rent equating to only £13.92 per sq ft overall. The hotel income reflects only £2,709 per bed (based on 50% of the current OMV). We understand the current OMV is in the order of £6,750 per room. The total current passing rent for the property is £348,578 per annum. Super reversionary due to the rent let at 50% of market rent and 3% compounded annual increases with potential to more than double the reversion in 13 years to in excess of 8% and potentially more in the event that pub is let at a higher rent than currently. The asset has strong alternative use potential due to its locational merits. Low capital value rate of £196 per sq ft.