A prominent waterfront hotel in Swansea has changed hands following a significant multi-million-pound commercial property transaction. The investment encompasses the 132-bedroom Premier Inn building, which has been acquired by ME Asset Management through its subsidiary, ME Swansea.
Financial Details and Lease Structure
While the precise value of the acquisition remains confidential, the deal was facilitated by a substantial £9.6 million senior loan facility provided by specialist real estate lender ASK Partners. The hotel is currently let to Whitbread plc under a secure occupational lease that extends until October 2035, ensuring long-term stability for the new owners.
Whitbread is committed to paying an annual rent of approximately £1 million for the premises. Additionally, the ground floor features a nearly 5,000 square foot retail unit operated by Tesco, adding another revenue stream. The property itself is held under a long-term leasehold agreement with the Welsh Government, secured at a nominal peppercorn rent of just £10 per year.
Strategic Acquisition and Future Plans
ME Asset Management, a firm specialising in the strategic repositioning of overlooked or underperforming properties through capital investment, is a new entrant in the operational real estate sector. Backed by a consortium of experienced property professionals, the company has identified this Swansea asset as a key opportunity.
ME Swansea has announced plans to undertake a programme of enhancements for the property, beginning with façade restoration work, as part of its strategy to add value to the acquisition.
Industry Perspectives on the Deal
Mike Ginsberg, Investment Manager at ASK Partners, commented on the transaction, stating: "This loan presented an attractive opportunity to finance a well-located, income-producing asset with a strong operator covenant. The long lease to Whitbread provides excellent cashflow visibility, while Swansea’s ongoing regeneration creates compelling demand fundamentals for quality hospitality assets. We were pleased to support ME Swansea on a transaction that aligns closely with our lending strategy."
Verender Badial, Chief Executive of ME Asset Management, added: "This acquisition reflects our focus on high-quality, income-producing assets in resilient regional markets. Swansea continues to attract significant inward investment, and the Premier Inn is exceptionally well located. ASK has been an excellent funding partner, and their understanding of value-add and operational real estate enabled us to execute this transaction efficiently."
ASK Partners has now provided over £2 billion in lending since its inception, offering flexible debt solutions to experienced sponsors across various real estate asset classes, including hospitality and residential sectors. The identity of the seller, who was represented by Savills in the transaction, has not been publicly disclosed.
