Whitbread has raised over 50m pounds from the sale and leaseback of seven Premier Inns and joint-site restaurants.
NFU Mutual and Standard Life Assurance will pay Whitbread £51.04m in cash and enter into 25-year leases who will continue to operate the properties.
This represents a net initial yield of under 5.3%, Whitbread said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company said that the price represents a profit over book value of £19.6m and is 95% of the 2007 valuation of the individual properties.
"This sale and leaseback is a continued evolution of our overall funding portfolio, and follows our successful 2011 US private placement and bank refinancing," said Finance Director Nicholas Cadbury.
"The significant book profit is a useful reminder of the value we create from our freehold developments, and the strong asset backing to Whitbread's balance sheet."
BC
-
Are you one of 15 million people at risk of retirement poverty?Two-fifths of people in the UK aren’t on track for a minimum lifestyle in retirement, new data shows. Are there steps you can take to boost your pension?
-
150 banking hubs now open across UK – is there one near you?As the 150th banking hub opens its doors, a Post Office deal that offers basic banking services has also been extended until 2030. We explain what this means for you
