Sep 11, 2015Axa Real Estate has agreed to fund Investra Development’s £17m Accor Hotel development in Ealing, west London.
The hotel, due to be completed in June 2016, will run under the Ibis Styles brand and provide 120 beds.
On completion it will be let to Accor on a 20-year lease with RPI-linked review and a yield of 4.5%.
The prime site, located on Uxbridge Road, is set to benefit from the opening of the Ealing Crossrail station and further associated development.
“Having secured a pre-let to Accor we have capitalised on the strength of the market for long-dated income and Axa has secured the last UK Accor lease to be signed, which fits perfectly with its long-income fund,” said Nick Hornby, Investra development director.
In a separate deal, Investra also recently purchased its fifth hotel in the US.
Investra Development was formed in May 2014, and is focusing on operational based assets for development, primarily hotels and student accommodation.
Axa was represented by JLL.