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Secure Income REIT decides not to sell Travelodge portfolio
StockMarketWire.com
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Property investor Secure Income REIT said it had received multiple bids for its hotel assets, though none were high enough to be followed through to a deal.
The company said it had also decided not to exercise a break option with regards to its portfolio of Travelodge hotels that would have seen it terminate the leases.
Secure Income REIT said it would maintain the current agreemenets following a recent company voluntary arrangement.
The leases of its 123-hotel portfolio would remain on the same terms and conditions, with a short-term reduction in rent.
Travelodge hotels represented about 19.6% of the company's portfolio value of £1.96 billion as at 30 June.
'As part of the process of exploring the company's options, the company also ran a sales process where, reassuringly, multiple bids supported the 30 June 2020 hotels portfolio valuation,' Secure Income REIT said.
'However, none of these offers reflected the potential for value recovery once the pandemic has subsided.'
'Consequently, and given the lack of certainty of outcome of these discussions, the board ultimately concluded not to pursue this option.'
Constructive discussions, the company added, had also taken place with Travelodge about restructuring its leases, with a further update to be provided as and when appropriate.
Story provided by StockMarketWire.com
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