Deloitte Real Estate advised Ropemaker Properties (BP Pension Fund) on providing development finance to Worthington Properties’ to enable the development of the Manchester Arena Travelodge on the former Boddington’s Brewery site, Manchester.
Once a landmark, within a city of landmarks, a portion of the former Boddington’s Brewery site was purchased by BP in 2010 and developed by Worthington Properties.
The development was facilitated on the back of a pre-let, which comprised a 200-bedroom hotel on a 35-year lease with RPI reviews. BP retained the income for three years and has recently traded to the St James Place PUT (managed by Orchard Street Investment Management).
Callum Robertson, director of UK investment at Deloitte Real Estate, said:
“As a team, we have worked with BP closely for a number of years to ensure the transaction was delivered and the income stream retained. This was traded on an ‘off market’ basis and this success is shown at a transacted level of £14.2m.
Barney Rowe, Partner at Orchard Street, said:
“The acquisition of this popular Travelodge asset in central Manchester enables us to benefit from exposure to inflation linked rental growth. This, together with the asset’s excellent location close to Manchester City Centre and adjacent to Manchester’s Phones 4U Arena, underlines our confidence in the asset’s long term reversionary potential.”
Deloitte Real Estate acted for BP and Morgan Williams Acted for Orchard Street
