Aviva completes first Irish apart-hotel acquisition and leaseback deal with Prem Group

Aviva’s Irish Property Fund has just acquired their first apart-hotel in Ireland from Prem Group which included a 35-year leaseback, reflecting a 5% net initial yield.

The apart-hotel will continue to be occupied by Prem Group’s Premier Suites brand, which has been successfully operating in the UK for a several years and now has new property openings in The Netherlands and Belgium.

Rhys Evans, Fund Manager of the Aviva’s 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 were one of the first serviced apartment operators to enter the Irish market and have built up a very good reputation within the industry. The Premier Suites brand has incidentally been shortlisted for a number of ASAP awards. The winners will be announced at the ASAP Serviced Apartment Industry Awards which takes place on the evening of the 6th of December 2018, following the ASAP 2018 Convention which takes place that day.

Saxbury is very familiar with Prem Group as we helped them to acquire their first Premier Suites apart-hotel in Glasgow on George Street, which has become the #1 on Trip Advisor for speciality lodging in Glasgow. Prem Group’s journey from local operator, to a well-known and respected pan-European hospitality provider has been nothing short of impressive.

If your building a serviced apartment company and need help with your next property acquisition, please contact Saxbury’s team of specialist agents.