Whitbread in £37m sale & leaseback deal

24th Dec 2009 07:04

Whitbread has agreed a sale and leaseback deal with M&G Investments that will net the hotel, pub and coffee shop group £36.65m in cash.The agreement covers five properties operating as Premier Inn and adjacent restaurants and is expected to complete in January.The money will be handed over on completion and M&G will enter into 25-year leases with Whitbread who will continue to operate the properties, representing a net initial yield of 5.5%.'Whitbread remains committed to having a predominantly freehold asset base, while selectively using its property as an alternative source of funding for its pipeline of new developments' said the firm.