Whitbread PLC Sale and Leaseback (4737D)
07 July 2016 - 4:00PM
UK Regulatory
TIDMWTB
RNS Number : 4737D
Whitbread PLC
07 July 2016
7th July 2016
Whitbread PLC announces the sale and leaseback of its 389 room
Hub by Premier Inn hotel in Kings Cross, London
As announced in April, Whitbread is planning to carry out sale
and leaseback transactions this year with proceeds of GBP100 to
GBP150 million.
As part of this, Whitbread announces today it has exchanged
agreements with Legal and General for the sale and leaseback of its
389 room Hub by Premier Inn hotel in Kings Cross, due to open in
2017, in exchange for a 25 year lease agreement.
Legal and General will pay GBP84.5 million in cash for the
property, with an initial payment of GBP46.5 million on exchange.
Further staged payments will be made during the construction period
with a final balancing payment being made on completion of the
hotel in June 2017.
The total sale price of GBP84.5 million produces a net initial
yield of just under 4% against an annual rent of GBP3.5
million.
Nicholas Cadbury, Group Finance Director of Whitbread PLC
commented:
"This transaction shows the strength of Whitbread's covenant and
the strong asset backing to our balance sheet as well as our
ability to recycle the value we create from our freehold
developments into new opportunities."
For more information please contact:
Investor Relations
Nicholas Cadbury, Whitbread PLC +44 (0) 20 7806 5491
Joanne Russell, Whitbread PLC +44 (0) 1582 888633
Press Contacts
Anna Glover, Whitbread PLC +44 (0) 7768 917 651
David Allchurch, Tulchan +44 (0) 20 7353 4200
For photographs and video please visit our media library on
www.whitbreadimages.co.uk
Notes to Editors
Whitbread PLC is the owner of the UK's favourite hotel chain,
Premier Inn and the UK's favourite coffee shop, Costa, as well as
restaurant brands, Beefeater, Brewers Fayre, Table Table and
Taybarns.
Whitbread PLC employs 50,000 people in over 2,300* outlets
across the UK, with its well-loved brands making every day
experiences special for over 27 million UK customers every
month.
Whitbread has outlined growth milestones for 2018 and 2020. The
2020 milestones are to increase the number of Premier Inn UK rooms
to around 85,000 and to achieve global system sales of around
GBP2.5bn for Costa.
At Whitbread we are committed to being a force for good in the
communities in which we operate. Our CR programme, 'Good Together'
is focused on three pillars of Team & Communities, Customer
Wellbeing and Energy & Environment.
In the year ended 3 March 2016, Whitbread PLC reported a 12.0%
increase in Group Revenue to GBP2,921.8 million and Underlying
Profit before tax of GBP546.3 million up 11.9%.
Whitbread PLC is listed on the London Stock Exchange and is a
constituent of the FTSE 100. It is also a member of the FTSE4Good
Index.
*excludes Costa Franchise stores and Costa Express
This information is provided by RNS
The company news service from the London Stock Exchange
END
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