The property investment in the building occupied by Premier Inn has been acquired by ME Swansea
A prime waterfront hotel in Swansea is under new ownership following a multi-million-pound deal. The property investment covering the 132 bedroom Premier Inn has been acquired by ME Asset Management through its subsidiary ME Swansea.
The exact value of the deal has not been disclosed but was supported with a £9.6m senior loan facility from specialist real estate lender ASK Partners (ASK).
The hotel is let to Whitbread plc under an occupational lease that runs to October 2035. The identity of the seller, represented by Savills, has not been disclosed.
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Whitbread is paying an annual rent of around £1m per year. On the ground floor there is a near 5,000 sq ft retail unit operated by Tesco.
The property comes under a long-term leasehold agreement with the Welsh Government at a peppercorn rent of £10 per year.
ME Asset Management specialises in repositioning overlooked or underperforming properties through strategic capital investment. Backed by a consortium of experienced property professionals, the business is a new entrant in the operational real estate space.
ME Swansea intends to undertake façade restoration as part of a wider enhancement programme.
Mike Ginsberg, investment manager at ASK, said: “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 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 has now lent over £2bn since inception providing flexible debt solutions to experienced sponsors across hospitality, residential and wider real estate asset classes.