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LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd on Monday said it has signed a pre-let agreement with hotel chain Premier Inn for a new 96-bed hotel at Arndale House in Leeds.
The trust acquired the Arndale Centre in Leeds for GBP16.1 million in January 2014 and, as part of the deal, took over the Arndale House office block, which is currently mostly vacant.
The agreement to lease the site to Premier Inn, which is owned by FTSE 100-listed Whitbread PLC, is conditional on the trust securing planning permission to convert Arndale House for hotel use. Subject to these conditions being satisfied, Premier Inn will sign a 30-year lease for the building at a rent of GBP412,800 per year.
Assuming the deal goes through, this will make Premier Inn the largest tenant at the wider Arndale Centre, which also includes retail and leisure facilities.
Shares in the trust were down 0.8% to 58.31 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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