Seneca snaps up Preston Premier Inn 

The investor did not disclose how much it paid for the 140-bedroom Fox Street hotel. The asset was put up for sale more than 12 months ago with an £8.7m price tag. 

Haydock-based Seneca Property has added the Preston Premier Inn to its growing portfolio, buying it from Kames Capital. The building is the investor’s first foray into the hotel market. 

Jeff Morton, chief executive of Seneca Property, said: “The current UK real estate climate presents an attractive, contra cyclical entry point for investments in well-located and well-occupied properties, particularly where you have a very strong and well-established tenant in place such as Premier Inn.” 

The seven-storey property was developed in 2011 at a reported cost of around £23m. 

Premier Inn signed a 25-year lease that same year. The hotel chain accounts for 91% of the asset’s total income, generating £725,000 a year in rent. 

The building’s ground floor occupiers include German Doner Kebab, clothing retailer Hollywood Exports and Kaspa’s Desserts.  

Premier Inn’s lease runs until 2036 and has a built-in break option in 2031. 

Seneca did not disclose how much it paid for the hotel. The asset was put up for sale more than 12 months ago with a £8.7m price tag. 

CBRE advised Kames and Christoper Dee acted for Seneca. Hill Dickinson advised on legals. 

Seneca’s other North West assets, mainly offices, include Deakins Business Park in Bolton, Victoria Mill in Macclesfield, and City View House in Manchester. 

Chris Bullough, managing director of Seneca Property, added: “We remain acquisitive and have significant funds to deploy, we are still seeing that the current market can provide opportunities to source and acquire assets with sound property fundamentals whilst also offering very attractive risk-adjusted returns”.