Aviva agreed a deal on Thursday to buy a 49-bedroom aparthotel in Dublin for a price understood to be in the region of €17.5 million.
The insurer's Irish property fund acquired the Premier Suites Plus aparthotel in Ballsbridge from Prem Group, an Irish hotels group.
Advised on the transaction by JLL, Aviva’s Irish property fund has acquired the hotel in a sale and leaseback agreement, with Prem Group staying on to operate the facility on a 35-year lease.
The company will continue to operate the facility under the Premier Suites brand in the first sale and leaseback of an aparthotel in the Republic.
Located on Merrion Road, the aparthotel has 49 suites including executive rooms, studio suites, one-bedroom and two-bedroom apartments, all of which were newly built in 2014. The one- and two-bedroom apartments have living areas with a fully equipped kitchen.
JLL senior vice-president Dan O’Connor said: “We are delighted with this acquisition for Aviva, which fits with their portfolio requirement of long income-to-quality covenants. This is a good asset in an excellent location and provides exposure to the growing hospitality sector.”
Performance metrics
Rhys Evans, fund manager of the Irish property fund, said it is focused on longer-term assets leased to “strong credit”. “With this asset’s location in the evolving Ballsbridge market, along with improving sector fundamentals, we expect to see good performance metrics being delivered for the fund’s investors,” he added.
Prem Group manages 50 properties with a total of 4,500 bedrooms across Ireland, the UK, Belgium, France and the Netherlands, ranging from the budget sector to luxury hotels.
Some of the group's properties in the Republic include the Cahernane House Hotel in Kerry and the Rochestown Lodge Hotel and Spa in Dublin.
"We are delighted to secure the sale of our Premier Suites Plus Aparthotel in Ballsbridge, and we are also proud to lease it back for a further 35-year term," said Stephen Loftus, commercial director and chief financial officer of Prem Group.
