Sweet dreams for Ask Developments and Realty Estates as they announce first pre-let and pre sale deal at former Boddingtons site with Travelodge Hotel signing
Date: 16/02/2010
Source: SKV
Deansgate Securities Limited, a joint venture between Ask Developments Ltd and Realty Estates, has announced its first deal on the 7 acre former Boddingtons Brewery site located to the north of Manchester’s city centre.
The developer has agreed pre-let terms with Travelodge Hotels Ltd for a 200 bedroom hotel which will be taken on a 35 year lease.
The first budget hotel brand to launch in the UK, Travelodge now operates 380 hotels in Ireland, Spain and the UK. The company has ambitions to expand, with plans to operate 70,000 rooms by 2020 and to be the biggest hotel operator in London by the time of the 2012 Olympics.
On behalf of Deansgate Securities Ltd, Alan Burke said; “We are delighted to have agreed terms with Travelodge, our first tenant, on the former Boddingtons Brewery site. This decision has been taken while the economy is still fragile and the property market remains subdued. It reflects a massive vote of confidence in the site, which is a stone’s throw from the highly successful MEN Arena and Manchester’s primary shopping area, the Arndale Centre.
“We are also delighted to announce today that we have agreed terms with Marcus Worthington Properties (MWPL) to forward purchase the investment and undertake the construction work. Our forward sale deal with MWPL reflects both parties willingness to think outside the box in a difficult funding marketplace”.
Tony O’Brien, Group property Director at Travelodge, said; “The Boddingtons site is a great location, benefiting from a strong business market as well as the MEN Arena which is one of the busiest concert venues in the world. This hotel reflects our strategy of developing in high profile locations in the UK’s leading city centres.”
Russ Worthington, Director of MWPL, said; “Because we are both developer and contractor we can aggressively compete with others in the market and act as a catalyst for development, facilitating deals like this one with Deansgate Securities.
“MWPL are delighted to be working with DSL and this is the third hotel deal we have done in the last six months which will further enhance our commercial development portfolio. We have been active throughout this turbulent period and are continually in search of similar opportunities.”
The developer expects to submit a detailed planning application for the scheme by the end of February and be on site in July 2010. It is anticipated that the hotel will open for business in June 2011.
Ask and Realty Estates acquired the 7.4 acre site in 2006 with funding from HSBC. Architects are HKR in Manchester.