UK Commercial Property REIT Limited has announced that it has acquired a hotel development opportunity in Leeds, from Marrico (Sovereign Square) Ltd, a joint venture between Marrico LLP and Helios.
The site itself was owned by Leeds City Council and UKCM is to fund the development, which is to be completed by Marrico, for a total commitment of £62.7M. The acquisition is in line with UKCM’s strategy to invest in operational real estate sectors that are expected to deliver resilient rental incomes.
The 12-storey hotel will be among the very best in Leeds, a city with excellent central amenities but an under-supply of quality hotels. It is scheduled to complete in 2024 and will have a 25-year franchise agreement in place with Hyatt Hotels, one of the leading global hotel brands with aspirations to grow its presence within the UK. The hotel will be operated under a lease by Interstate Hotels & Resorts, a leading international hotel operator, with UKCM’s rental income based on the income generated from the operation of the hotel.
The 140,000sq ft property will comprise 305 rooms, split between the short stay Hyatt Place and the long-stay Hyatt House brands. The upscale hotel will provide meeting rooms, a gym and several food and beverage options, including a rooftop bar with its own dedicated entrance.
