Dublin,
28
September
2018
|
11:25
Europe/Dublin

Investment Sale Of Premier Suites Plus Dublin Ballsbridge Completed

49-Unit Aparthotel Let to Prem Group Sold to the Aviva Irish Property Fund

Dublin, 28 September 2018 – CBRE Hotels are delighted to confirm that the 49-unit Premier Suites Plus Dublin Ballsbridge aparthotel has been acquired by the Aviva Irish Property Fund and has been leased back to its previous owners, Prem Group, on a 35-year lease at a 5.0% Net Initial Yield.

Prem Group, who sold the property to the Aviva Irish Property Fund, will continue to operate the aparthotel under its Premier Suites brand. The transaction represents the first sale and leaseback in the aparthotel space in Ireland.

The property is centrally located on Merrion Road and ideally situated in the affluent Ballsbridge district, within minutes of the RDS, Aviva Stadium, AIB Bank Centre and Sandymount Dart Station. The 49 apartment suites offer a range of accommodation options, including Executive Rooms, Studio Suites, One-Bedroom Suites and Two-Bedroom Suites, which were all newly built in 2014. The One-Bedroom and Two-Bedroom Suites all offer a living area and fully equipped kitchen.

The sale represents the Irish Property Fund’s first venture into the Irish hospitality and aparthotel space. Aviva Investors were advised by JLL on the transaction.

Rhys Evans of Aviva Investors, Fund Manager of the Irish Property Fund commented:

“We are delighted to secure this Sale and Leaseback transaction with PREM Group, an established operator in the aparthotel sector with a great track record. The Fund is currently focused on longer income assets leased to strong credit, and with this asset’s location in the evolving Ballsbridge market, along with improving sector fundamentals, we expect to see good performance metrics being delivered for the Fund’s investors.”

PREM Group is a specialised owner-operator of hotels and serviced apartments throughout Europe.

The group are the pioneers of the serviced apartment model in Ireland, opening its first Premier Suites in Dublin over 20 years ago, and it has built the PREM Group brand up to a level where it now operates and manages 50 properties with a total of 4500 bedrooms across Ireland, the United Kingdom, Belgium, France and The Netherlands, ranging from the budget sector to luxury hotels.

Premier Suites and Premier Suites Plus provide an alternative accommodation type to longer stay guests and business travellers.

Stephen Loftus, Commercial Director and CFO of PREM Group, commented;

“We first identified a major gap in the market some 20 years ago for alternative accommodation offerings that would suit long stay guests and business travellers. Business people who travel a lot for work often do not want to be confined to the traditional setting of a hotel. All of our Premier Suites are serviced apartments, and many come with fully equipped kitchens and living spaces. We have seen the popularity of the Premier Suites and Premier Suites Plus brands grow exponentially over the last 20 years, and that is being mirrored in our other properties in the UK and mainland Europe. We are delighted to secure the sale of our Premier Suites Plus Aparthotel in Ballsbridge, and we are also proud to lease it back for a further 35-year term.”

Dave Murray, Director, CBRE Hotels
“This is a major sale in the Irish aparthotel industry as it is the first leaseback of its kind, and this deal is further evidence of the growing interest in the hospitality space from the capital markets throughout Europe. We are delighted to have facilitated this deal as it is a very important one for the sector.”
Dave Murray, Director, CBRE Hotels

Dan O’Connor, Senior Vice President, Hotels, JLL, Ireland, added:

“We are delighted with this acquisition for Aviva, which fits with their portfolio requirement of long income to quality covenants. This is a good asset in an excellent location and provides exposure to the growing hospitality sector”.

 

 

About CBRE

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie