French hotel group Accor has completed a £40m sale-and-leaseback of three of its UK hotels.
The 106-bedroom Ibis hotel in Hull, Humberside, the 182-bedroom Novotel London City South in Southwark, and the 124-bedroom Novotel Milton Keynes in Buckinghamshire have been sold to recently launched property investment fund HerAx and leased back to Accor on 25-year leases.
It is the first deal for HerAx, a £250m joint venture between property firm Heron Corporation and insurer Axa Sun Life, which plans to have a diverse portfolio of hotels, offices, warehouses and retail properties in the UK worth £10m or more.
Heron Corporation also completed a sale-and-leaseback of four Accor-owned Ibis hotels in Spain - two in Madrid, one in Barcelona and one in Valencia - for an undisclosed sum.
CBRE Hotels advised on both deals.