Prem Group enters Dublin sale and leaseback deal with Aviva

George Sell George Sell Uploaded 28 September 2018

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Ireland: Institutional investor Aviva has acquired a Premier Suites Plus aparthotel in Dublin.

Reports in local media estimate the price of the property, in Ballsbridge, Dublin 4, at between €15 million and €20 million.

A sale and leaseback deal for the 49-unit property has been agreed with the Prem Group. The deal is Aviva's Irish Property Fund's first move into the hospitality and aparthotel market. Under the terms of the transaction, the Prem Group has entered into a 35-year lease at a 5.0pc net initial yield.

Dave Murray of CBRE's hotel division, who handled the sale on behalf of the Prem Group, said: "This is a major sale in the Irish aparthotel industry as it is the first leaseback of its kind, and is further evidence of the growing interest in the hospitality space from the capital markets throughout Europe."

Aviva Irish Property Fund manager Rhys Evans said: "The fund is currently focused on longer-income assets leased to strong credit. 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."

Dan O'Connor, vice-president at JLL's hotel division, advised Aviva on the deal.

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