Salmon Harvester Properties, the joint venture between Salmon Developments and NFU Mutual, and (SWIP) Scottish Widows Investment Partnership have completed their £17.5 million hotel and retail development at Vauxhall Interchange, South London.
The 148-bed hotel is pre-let to Travelodge on a 35-year lease with five yearly upward only rent reviews linked to RPI. Waitrose has taken the 5,800 sq ft ground floor retail unit on a 15 year lease for its format known as ‘little Waitrose’.
Philip Skottowe development director of Salmon Harvester said: “As well as bringing much needed hotel and retail amenities to this location, this scheme is adding to the significant regeneration taking place at Vauxhall Cross.”
Robert Ryan, central London development manager for Travelodge Hotels, said: “Given all the exciting developments planned in the Vauxhall Nine Elms Battersea Opportunity Area over the forthcoming years, there really could be no better location for a Travelodge hotel in the area than here.
“Situated just yards from the Underground Station, the strength of our bookings prior to the Hotel even opening shows we will soon be operating at full occupancy.”
Salmon Harvester forward sold the development to SWIP in June 2011.
Geoff Hepburn, Deputy Fund Manager, HIFML UK Property Fund commented: “We are delighted to have funded this scheme on behalf of HIFML. We expect the investment to deliver positive performance owing to its excellent fundamentals; being very well connected in a growth location, let on long leases.”
Letting and investment agents were Capita Symonds and Bidwells. Joiner Cummings and Forsters advised SWIP.