Acting on behalf of the Albert Gubay Charitable Foundation, Derwent Estates, the charity’s in-house investment manager, has strengthened the hotel element of the charity’s portfolio with the acquisition of its second Travelodge hotel and its first investment in Birmingham city centre.
The building was put on the market earlier this year for £10.33m by ADS RE on behalf of the vendor, Charterhouse.
Comprising an 88-bedroom Travelodge hotel together with a ground floor Tesco Express, the asset provides long term, secure income from two high profile occupiers. Both tenants re-geared their leases in 2025, resulting in a weighted average unexpired lease term (AWULT) of 24.5 years, with attractive index-linked rental provisions.
The property occupies one of Birmingham’s most strategically important locations, at the heart of the Birmingham Central Heart regeneration zone, adjacent to Curzon Street Station, the future city centre terminus for HS2. The area is set to benefit from significant regeneration and investment, reinforcing its long-term growth prospects.
The acquisition marks the Foundation’s second hotel investment, adding to a diversified property portfolio worth over £550m that generates sustainable income in support of its charitable objectives.
Jonathan Black of Derwent Estates, says: “We are delighted to have secured this investment, which fulfils the charity’s ongoing investment criteria of acquiring core assets with long, index-linked income in strong locations that will support the charity’s purpose of providing grants to good causes for many years to come.”
Tom Hesp of Charterhouse comments: “It’s fantastic to have concluded the repositioning of the asset and to have sold it to the Albert Gubay Charitable Foundation, knowing the income will contribute to good causes. The realisation of the business plan further cements our position as a market leader remediation specialist investor, with a focus on hotels in particular.”
Anthony Sidoli of ADS who represented Charterhouse says: “Having identified the opportunity and acquired the asset on behalf of Charterhouse, we were delighted to have assisted in completing the sale following their successful repositioning programme. The asset’s strong income profile and strategic position in Birmingham were reflected in a highly competitive bidding process. We would like to congratulate the Albert Gubay Charitable Foundation on its acquisition.”
Dan Whittingham of CBRE who acted on behalf of the Albert Gubay Charitable Foundation and Derwent Estates, adds: “At a time when high-quality, long-income properties rarely come to the market, we’re pleased to have sourced an opportunity that precisely matched Derwent’s investment requirements. Securing an asset with an AWULT of 24.5 years, index-linked income, and a location at the heart of one of Birmingham’s most significant regeneration zones, adjacent to HS2’s Curzon Street Station, represents a fantastic long-term acquisition. It was brilliant to have acted for the purchaser on the transaction, which was the second acquisition the CBRE Birmingham Investment team have advised the Albert Gubay Charitable Foundation and Derwent Estates in the last two and a half years.”
