DTZ Investors has completed the purchase of Combined House and International House, Kingston-upon-Thames (Greater London) for a price of £55.9m.
The asset includes two 10-storey buildings and a shopping mall comprising 144,200 sq ft of hotel and retail accommodation plus a 366-space multi-storey car park. The two hotels are let to Premier Inn and Travelodge, with retail units let to Argos, Poundland and Aldi. The car park is leased to NCP.
The acquisition provides the Fund with a well-diversified income stream, with approximately 55% of the income being derived from the two hotels, 35% from the retail units and 10% from the car park. Future income growth is also well diversified, with c.65% of the income on index linked review patterns, 20% of the income on fixed uplifts and 15% on open market reviews.
Peter O’Gorman, Fund Manager at DTZ Investors, said: “This asset will deliver a sustainable income stream, whilst providing good growth potential at minimal risk. With a Weighted Average Unexpired Lease Term of 17.2 years and 85% of the income on fixed or index linked reviews, this asset will provide defensive and reliable returns for the Fund.”
