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New Middlesbrough Premier Inn snapped up for £6.2m

The new Premier Inn hotel currently under construction at Wilson Street, Middlesbrough has been acquired by real estate investment trust LXi REIT plc £6.2m.

The company invests in UK commercial property assets let, or pre­let, on very long (typically 20 to 30 years to expiry or first break), inflation-­linked leases.

The Middlesbrough-based building, due to be completed in December later this year, has been fully pre-let to Premier Inn Hotels Limited.

The lease will run for a term of 25 years from completion of the building works, with a one-off tenant break right at the end of year 20. The property is being purpose-built for the tenant and will comprise of a six storey, 83 bedroom hotel.

Meanwhile, building works have reached completion for the Premier Inn and Beefeater in Whitley Bay, complementing the town’s ongoing seafront regeneration.

Simon Lee, Partner of LXi REIT Advisors Limited, commented: “We are pleased to be forward purchasing this new and well-located Premier Inn hotel, which will provide the Company with a long, inflation-linked income fully underpinned by the strong Whitbread PLC and Premier Inn covenants.”

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