RPMI Railpen, the investment manager for the £30bn railways pension scheme, has acquired the commercial ground rent secured against a hotel next to Gatwick Airport. The 185-room property is let on a 150-year lease to Axcel Group.
Formerly a Travelodge, Axcel is to implement a comprehensive high-quality refurbishment of the hotel, including upgrading rooms and a full renovation of the reception, restaurant and bar areas. The hotel will open as a Hyatt Place (Hyatt Heathrow pictured) with completion set for Q3 2021.
Julian Allport, of Railpen’s Long Term Income Fund, commented, “Our priority is ensuring we continue to provide secure, consistent, inflation-linked income for our members.
'The hotel is well located for long-term growth, managed by an experienced operator and benefits from a franchise agreement with one of the world’s leading brands.
'The completion of this transaction highlights that Railpen is very much open for business to invest in the right opportunities.”
Railpen and Axcel Group dealt direct, with legal counsel provided by Winckworth Sherwood and Harold Benjamin respectively.