The hotel is located close to Sunderland University. Credit: Savills

Sunderland’s Premier Inn sells for £7.8m

15 April 2025 16:45 Sally Gibson Comments (0)

The 125-bedroom hotel has been acquired by a French real estate collective, with the sale to Iroko Zen being handled by Savills.

Savills and Gowling WLG represented Savills Investment and Avison Young and Herbert Smith Freehills represented Iroko Zen on the transaction.

Acquired by a French Société Civile de Placement Immobilier, which is a property product that allows savers to receive a regular income from dividends, the six-storey building has a 25-year lease with an annual passing rent of £544,500.

The lease expires in 2040.

This particular SCPI is looking to target UK investment opportunities, and has focused on the property at 1-3 Hind Street, which represents a 7.65% net initial yield.

Peter Atkinson, director of investment at Savills, said: “It was a pleasure to close this deal to Iroko, in line with our client’s divestment strategy.

“As the second property we have sold to a French SCPI fund in the last few months, it’s clear that there is continued confidence in both Sunderland and the wider North East region for inward investment.”