CDL Hospitality Trusts is acquiring the Hotel Brooklyn, located in Manchester in the U.K., from RAHoldingsUK for GBP22.8 million, or around S$41.5 million, the REIT said in a filing to SGX Tuesday.
Hotel Brooklyn is a four-star, upscale hotel centrally located in Manchester, within walking distance of the central business district and popular tourist attractions, the filing said.
The property began operations in February 2020 and has 189 rooms, two food and beverage outlets, three meetings rooms which can be combined, and a casino with a restaurant and bar, the REIT said.
On a pro forma basis, the property is expected to have distribution per stapled security (DPS) accretion of 1.1 percent, with a net property income yield of 7.4 percent based on the estimated net property income of GBP1.7 million, CDL Hospitality Trusts said.
The trust said it plans to finance the deal via debt.
The independent valuation placed the property value at GBP25.3 million, or around S$46.1 million, as of end-December, the filing said.
The property has HLD (Manchester), which is part of the Marshall Holdings group, as an occupational tenant, the filing said. The occupational tenant pays a fixed rent of GBP2.3 million annually, subject to upward-only rent review based on inflation, the filing said.