Freehold Ground Rent 'Choice Portfolio' 3 Hospitality Properties Offered at £15,300,000 in Multiple Locations

**Freehold ground rent investment, benefiting from c.121 years of contracted, RPI-linked ground rent income. The hotels are fully occupied and operated by the tenant under long-dated ground rent leases.**
Portfolio Summary
• Ground rent portfolio comprising three assets let to EC4 Hotel Limited (subsidiary of Choice Hotels Limited)
• The three hotels are well located in Harrogate, Huddersfield, and Wakefield
• All leases commence 1st November 2017 for a term of 125 years providing over 121 years to expiry (expiring 31st October 2142)
• Total passing rent of £489,819 p.a.
• The ground rent reflects a blended EBTIDA to rent cover ratio of c14% off forecasted stabilised
• All assets are held Freehold
• The rent is subject to upwards only 5 yearly, RPI rent reviews, collar and cap of 0%-4% with the next review in November 2022
• All assets are underpinned by VP and alternative use values
• Rent has continued to be paid in full throughout the Covid 19 Pandemic
The vendor is seeking offers in excess of £15,300,000 (Fifteen Million and Three Hundred Thousand Pounds) reflecting a net initial yield of
3.00% after purchaser’s costs of 6.70%. A purchase price at this level represents a very low average price per key of £42,265 which is less than VP or build cost.
Reversionary yield of 3.40% following the review in 2022 assuming RPI growth of 2.5% p.a.
At the quoting price, the net income generated from the hotels would reflect a yield of c21% off forecasted stabilised.