RPMI Railpen acquires Gatwick hotel ground rent
RPMI Railpen (Railpen), the investment manager for the £30bn railways pension scheme, has acquired the commercial ground rent secured against a hotel next to Gatwick Airport. The former 185-room property is let on a 150-year lease to Axcel Hospitality Group.
Formerly a Travelodge, Axcel Hospitality is to implement a comprehensive high-quality refurbishment of the hotel, including upgrading rooms and a full renovation of the reception, restaurant and bar areas. Heads of Terms to open as a Hyatt Place have been signed and estimated completion is Q3 2021.
Julian Allport, of Railpen’s Long Term Income Fund, commented: “Our priority is ensuring we continue to provide secure, consistent, inflation-linked income for our members. The hotel is well located for long-term growth, managed by an experienced operator and benefits from a franchise agreement with one of the world’s leading brands. The completion of this transaction highlights that Railpen is very much open for business to invest in the right opportunities.”
Railpen and Axcel Hospitality Group dealt direct, with legal counsel provided by Winckworth Sherwood and Harold Benjamin respectively.
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For further information, please contact:
Nick Thornton at Aver via nickthornton@averpr.com or 07808940208.
Notes to editors:
· RPMI Railpen is the trading name of Railway Pension Investments Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). RPMI Railpen acts as the investment manager of the railways pension schemes and is responsible for the management of around £30bn.
· RPMI and RPMI Railpen run the railway pension schemes on behalf of their parent, the Railways Pension Trustee Company Limited (RPTCL).
· RPMI offers a complete range of pensions administration services for all types of scheme, including Final Salary, Career Average Revalued Earnings and Defined Contribution along with pensioner payroll, data cleanse, co-sourcing and hosting and scheme accounting.
· The company also provides a range of services to pension scheme trustees, such as communications, trustee training, scheme balloting, pensions technical and regulatory services and scheme governance.
· The Railways Pension Scheme won the Pensions Age European Pension Fund of the Year and Best Investment Strategy awards 2018.