Northern Ireland-based developer and contractor McAleer & Rushe has sold the Maldron hotel development in Newcastle city centre for £32.7m.
The site on Newgate Street has been sold to UK Commercial Property Trust (UKCPT), which is advised by Standard Life Investments, on a forward funding basis reflecting a market investment yield of 4.99% on completion.
The six-storey, 265-bedroom hotel due to be completed in March 2019 is let on a 35-year lease to Dalata, and will be the first Maldron hotel in England. It forms part of McAleer & Rushe's wider £75m mixed use regeneration scheme in the city.
Stephen Surphlis, property director of McAleer & Rushe, said: "The new Maldron hotel and the complete mixed-use scheme is a significant project and will support Newcastle's continued economic development by attracting both business and leisure visitors to the heart of the city."
Joint agents CBRE and Steerforth Partners advised McAleer & Rushe, with Knight Frank advising Standard Life Investments.
As well as its hotels in Ireland, Dalata operates eight hotels in the UK in London, Cardiff, Leeds, Birmingham, Belfast and Manchester Airport, and plans to open new Clayton hotels in Glasgow and Manchester.
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