Manchester Arena snapped up in £436m double portfolio acquisition
Manchester Arena and various other property assets across the UK have been acquired in a single nine-figure deal.
Secure Income REIT Plc, a long-term income real estate investment trust, confirmed this morning (March 9) it has exchanged contracts to purchase two off-market portfolios for £436m.
The transaction will be part financed by a share placing that could raise up to £315.5m.
Manchester Arena falls under the first portfolio acquired along with other elements of its eight-acre estate, including 160,000 sq ft of office and additional leisure space, the 1,000 space multi-storey car park and various advertising hoardings.
The arena, the UK’s largest indoor arena with a capacity of 21,000 seats, produces an annual income of £5.75m, rising to more than £6m when the rent goes up on the lease in June. It is let for 27 years to venue management company SMG.
Tenants of the nearby office and leisure space include public services provider Serco, Manchester City Council, trade union Unison, advertising giant JCDecaux and go-karting operator Teamsport.
Also in the first portfolio is The Brewery events space at Chiswell Street in London, 17 hotels let to Travelodge and 18 freehold high street pubs let to or guaranteed by operator Stonegate Pub Company Limited.
The second portfolio in the deal comprises a further 59 hotels let to Travelodge.
Together, the two acquisitions will increase Secure Income’s property count from 81 to 177.
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