Whitbread Web Site - December 24, 2009
Whitbread, the UK's largest hotel and restaurant group, announces today that it has exchanged agreements with M&G Investments for the sale and leaseback of five properties operating as Premier Inn and adjacent restaurants.
On completion, which is expected in January 2010, M&G Investments will pay £36.65 million in cash for the properties and enter into 25 year leases with Whitbread, who will continue to operate the properties. This represents a net initial yield of around 5.5%.
Whitbread remains committed to having a predominantly freehold asset base, while selectively using its property as an alternative source of funding for its pipeline of new developments.
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