The Lancashire County Pension Fund has bought a new £4.8m hotel in Blackburn’s new Cathedral Quarter.
The fund, a local authority pension scheme, has aquired the hotel from Maple Grove Developments, part of the Eric Wright Group.
It sold its 60-bedroom Premier Inn hotel and 3,500 sq ft ground floor restaurant at Blackburn Cathedral Quarter to Knight Frank Investment Management on behalf of Lancashire County Pension Fund for £4.8m.
That represented a net yield of 5.79 per cent.
The £16m town centre regeneration project, pioneered by Blackburn and Darwen Borough Council and Maple Grove Developments, will create a new mixed-use commercial quarter around the Cathedral fronting the railway station and a new bus interchange.
The scheme, being built by Eric Wright Construction, is scheduled for completion at the end of September, with the Premier Inn due to open in November
Graham Pilkington, senior development surveyor at Maple Grove Developments, said: “We’re delighted to have secured a deal for the new Premier Inn and ground floor restaurant, which shows the local authority’s confidence in the scheme and its role in regenerating Blackburn town centre.”
Ben Ward, investment manager at Knight Frank Investment Management, added: “We are very pleased to be able to add this asset to the Lancashire County Pension Fund’s County of Lancashire property portfolio.”