Whitbread PLC Sale & Leaseback (0241U)
12 January 2017 - 9:56PM
UK Regulatory
TIDMWTB
RNS Number : 0241U
Whitbread PLC
12 January 2017
12 January 2017
Whitbread PLC announces the sale and leaseback of two prime
London sites
Whitbread announces today it has completed two sale and
leaseback transactions on prime London hotels. These transactions
are in line with our property strategy to carry out modest sale and
leasebacks in order to recycle capital into strong returning new
growth opportunities, and are further evidence of how we optimise
our significant property portfolio.
Whitbread has concluded with M&G Investments for the sale
and leaseback of its 339 room hub by Premier Inn hotel in Tothill
Street, Westminster due to open in October 2017, in exchange for a
25 year lease agreement. M&G Investments will pay GBP101.825
million in cash for the property, with an initial payment of
GBP73.7 million on exchange, with a final balancing payment being
made on completion of the hotel in October 2017.
Separately Whitbread has also concluded with Aviva Investors for
the sale and leaseback of its 326 room Premier Inn in West
Smithfield, Farringdon, due to open in December 2018, in exchange
for a 25 year lease agreement. Aviva Investors will pay GBP102.86
million in cash for the property, with an initial payment of
GBP66.0 million on exchange, with a final balancing payment being
made on completion of the hotel in December 2018.
These deals have both been completed against a net initial yield
of just under 4% against an annual rent of GBP4.20 million and
GBP4.24 million respectively. Total proceeds from sale and
leaseback transactions this year are now expected to be around
GBP200 million.
Nicholas Cadbury, Group Finance Director of Whitbread PLC
commented:
"Following the success of our forward funding deal of hub by
Premier Inn at Kings Cross in July 2016, I am delighted to announce
the sale and leaseback of two additional prime London sites in
Tothill Street and West Smithfield. These agreements highlight the
strength of Whitbread's covenant and the strong asset backing to
our balance sheet and align with our property strategy to carry out
modest sale and leaseback transactions to recycle capital into
strong returning new growth opportunities in the UK and
Germany."
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 and Table Table.
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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