Union Property is delighted to be shortlisted for “Property Deal of the Year”, for the sale of Travelodge Quayside and Meliá Innside to Orchard Street Investment Management.
Raj Sehgal, Managing Director at Union Property said “We are honoured to have been recognised in these prestigious awards, which celebrates success in the North East property industry. This project will be a huge step towards the Newcastle’s Riverside transformation, and a new hospitality benchmark within the city of Newcastle”.
A delegation from Union Property will attend MIPIM to promote Newcastle’s benefits as a place to invest, develop or locate.
Union Property Services have submitted a planning application for a Lidl supermarket, a 69 bedroom Travelodge hotel and 250 public car parking spaces at the former bunker site on Alemouth Road, in Hexham.
Up to 60 new jobs will be created as part of a multi-million pound retail complex. Other economic benefits from the scheme include extra trade for nearby businesses, an increase in tourist numbers to the town and improvements to local roads.
Great progress at our Melia Newcastle project today.
The existing building has been demolished and the site prepared to receive the piling rig, all under bright blue skies.
A specialist property investor has agreed to forward fund a 161-room hotel in Newcastle, which is due for completion in 2020, and has acquired another venue on the banks of the River Tyne in the city.
Orchard Street Investment Management has completed the £38m transaction for the Travelodge Quayside hotel and the forward funding of a Meliá hotel development on behalf of St James’s Place UK. The combined purchase price reflects a net initial yield of 4.5 per cent.
Due for completion in summer 2020, the Meliá development is a purpose-built hotel with 161 rooms on seven floors.
The venue, to be operated under the company’s INNSIDE brand, will also contain a restaurant, bar, fitness suite and conference facilities. The asset has been pre-let for a term of 25 years and will be subject to five-yearly inflation-linked rent reviews.
The adjacent 120-room Travelodge Quayside hotel opened in November 2017 and also includes a restaurant and bar. Travelodge pre-let the entire building for a term of 25 years, with five-yearly inflation-linked rent reviews.
Orchard Street was advised on the transaction by Whitmarsh Holt Young, while seller Union Property Development was advised by Lambert Smith Hampton.
Harry Buxton, acquisitions manager at Orchard Street, said: “Newcastle’s appeal as a business and tourist destination continues to strengthen.
“These acquisitions provide a strong foothold in Newcastle’s hotel market and, with the hotels benefiting from high-quality covenants and long lease terms with minimum rental uplifts, the assets will provide stable income returns for our client.”
Managing director of Union Property Development Raj Sehgal added: “We are thrilled to have completed these transactions with Orchard Street and are proud to be able to bring high-quality developments such as the new Travelodge and Meliá INNSIDE hotels to Newcastle; which in turn will create jobs and bring this prime area of the city to life.”
Work has commenced on our brand new hotel on Newcastle Quayside as part of a multi-million development.
Operated by Spanish hotel group Meliá Hotels International, the four-star, seven-storey Innside Hotel is located next to our earlier Travelodge Hotel development, replacing the east wing of the former BT building, Bridge Court.
Construction of the new hotel, only the second Innside in the UK, is expected to be completed by summer 2020. The hotel will include a lounge, bar and restaurant, plus conference facilities, a fitness lounge and 25 car park spaces.
Raj Sehgal, Director said: “This development breathes new life into a substantial vacant building on the historic quayside. We now look forward to bringing the Innside hotel forward to complete this market leading scheme. Union Property are focused on delivering best in class developments and we are proud to bring this transformational project to our home city”.
Find out more about Newcastle Quayside Travelodge here:
https://www.travelodge.co.uk/hotels/633/Newcastle-Quayside-hotel
Over the next twelve months Union Property Services Ltd are bringing to the market two exciting developments at Riverview on Newcastle Quayside and Collingwood Street in Newcastle town centre.
If you have any enquiries please direct them to info@union-property.co.uk
Please watch here for further updates.
Union Property Services was formed last year by Mukesh and Promila Sehgal, who founded the fashion and clothing business Visage in the 1980s, and their son Raj Sehgal.
The Newcastle-headquartered property asset and investment management firm has now secured a £100m refinancing package with NatWest, a deal which will help the firm’ plan to grow through the acquisition, refurbishment and development of new accommodation across the UK, in particular the North East.
In addition to creating new homes, student accommodation and business premises, the firm said the investment will also benefit the local construction industry and its supply chain, through new developments.
Raj Sehgal, director of Union Property Services, said: “The refinancing facilities will allow us to deliver on our clients’ growth strategy which includes developments throughout the North East region.
“We are committed to investing in these communities and rely on our continuing relationship with NatWest to make this a reality.”