LEI: 213800BMY95CP6CYXK69

25 August 2023

ALPHA REAL TRUST LIMITED ("ALPHA REAL TRUST" OR THE "COMPANY")

ACQUISITION OF A TRAVELODGE HOTEL and PUBLIC HOUSE IN YARDLEY, UNITED KINGDOM

ART announces it has acquired a hotel and public house in Yardley, Birmingham, United Kingdom for £5.1 million including acquisition costs.

The property is leased to Travelodge Hotels Limited, the United Kingdom's largest independent hotel brand with more than 590 hotels. The property is let until November 2060 with a tenant only break option in 2035, providing 12 years term certain to the break clause. Under the lease the tenant is responsible for building maintenance and the rent has inflation linked adjustments, reflecting an initial yield of 8.3% p.a.

ART has acquired the asset for cash.

The 64-bedroom hotel and public house is held freehold and is situated to the east of Birmingham City Centre off the A45. The hotel is in a well-connected location equidistant between Birmingham City Centre to the west and Birmingham Airport to the east.

Investment rationale

This acquisition offers the Company the potential to benefit from a long term, predictable, inflation-linked income stream whilst contributing additional diversification to ART's portfolio. In addition, the investment offers the potential for associated capital growth. 

The Company remains focused on asset-backed lending, debt investments and high return property investments in Western Europe that are capable of delivering strong risk adjusted cash flows.

For further information please contact:

Alpha Real Trust Limited

William Simpson, Chairman, Alpha Real Trust                             +44 (0) 1481 742 742

Brad Bauman, Joint Fund Manager, Alpha Real Trust                  +44 (0) 20 7391 4700

Panmure Gordon, Broker to the Company

Atholl Tweedie                                                                          +44 (0) 20 7886 2500

Further information on the Company can be found on the Company's website: www.alpharealtrustlimited.com.