Ramada Jarvis hotel acquired in £7.26 million deal
12 April 2008
King Sturge Investment team acted for new owners, Manchester-based Blair Estates
The Ramada Jarvis Leeds North Hotel has been acquired for £7.26 million in a deal in which the Leeds office of property consultants King Sturge acted for new owners, privately-owned property investment business, Manchester-based Blair Estates.
The two-storey, 105-bedroom Ramada Leeds North Hotel at Millgreen View on Leeds Ring Road incorporates architectural features from an historic windmill and was previously owned by London-based Morley Fund Management.
The deal follows a slowing in the property investment market due to declining values amid fears over the economy and the `credit crunch’ which has affected the availability of funds.
The acquisition was handled by an associate in the King Sturge Investment Team, Ben Hall, who says: “The investment market has definitely slowed during the last six months. During this time lenders have become reluctant to take on any risk and raising finance for any deal with an appreciable risk factor has become tricky.
“In spite of this, financiers are still interested in backing deals where the risk is minimal and, in this case, the Ramada Jarvis Leeds North Hotel lease has a long unexpired term with fixed annual uplifts in line with the Retail Price Index (RPI) making it easier to secure a covenant.
“There are still strong requirements for this kind of property and we are delighted to have acted for Blair Estates in this acquisition which represents a sizeable deal for this type of property in the current market.”
