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Investment firm Secure Income to snap up 55 Travelodges

London-based investment firm, Secure Income REIT, has announced it is to acquire 55 Travelodge properties throughout England in a £196m deal.

The firm, which also owns Alton Towers, has announced that the deal will provide rental income of £13.7m with yield anticipated to rise by 7.3% by October 2017.

The portfolio of properties represents 3,096 rooms and will be part funded through a raise of 46.9m ordinary shares to institutional investors from which the company hopes to raise £140m, the remainder will be satisfied by a new £60m seven-year debt facility which the firm already has credit approval for.

It comes after Travelodge embarked on a £100m refurbishment drive of its hotels which includes those being acquired by Secure Income.

The property investment firm also posted some heartening figures to the stock exchange this morning for the first half of the year as its portfolio value jumped 2.1% to £1.38bn while net asset values rose 6.2% to £541.5m from December 2015.

Martin Moore, Independent Non-Executive Chairman of the Company, commented: “We are very excited to have secured an opportunity to expand our business with the £193 million Travelodge transaction which, if supported by shareholders, will raise our dividend yield, lengthen our lease duration even further, degear the business and diversify our covenant profile.”

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