Alternative Income REIT PLC has completed the sale of the Mercure City Hotel, Ingram Street, Glasgow, for c. €8.7m to the current tenant S Hotels & Resorts Limited. This property represented 6.5% of the Group's portfolio at 30 June 2023. The disposal represents a 7.9% premium of €639,350 on the book value on 30 June 2023 and reflects a net exit yield of 8.9%.
Based on the 30 June 2023 valuations, the transaction reduces the Group's LTV from 41.6% to 36.7%, whilst the interest cover ratio is 556.3% on the Group's debt facility, which is fixed at 3.19% and matures in October 2025. The Group intends to redeploy the proceeds from this into additional investment assets as soon as practical.
Simon Bennett, Non-Executive Chairman of Alternative Income REIT PLC, commented: "We are pleased to sell the hotel in central Glasgow at an attractive 7.9% premium to book value. The sale will enable the proceeds to be recycled into one or more properties as the Group seeks to achieve further diversification of the portfolio's tenants and assets."
