20th Feb 2014 09:02
LONDON (Alliance News) - Development Securities PLC Thursday said it has bought the Royal York Buildings in Brighton for GBP4.5 million from an administrator acting on behalf of an unnamed bank, which it will convert into a youth hostel.
The Grade II listed Royal York Buildings are vacant and comprise 45,000 square feet of space that includes the former 51-bed Royal York Hotel. The property also includes nine serviced apartments and 3,400 square feet of retail and amenity space.
The property developers said planning consent has been secured to convert the space into a 180-bed youth hostel, with a 100 year lease signed with the Youth Hostels Association at starting rent of GBP200,000 a year.
The remaining space presents several options for asset management and enhancement in order to add value, and in the near-term, the serviced apartments will be refurbished and let, it added.
Development Securities said after the expiry of a short rent-free period, the hostel and serviced apartments will produce an expected income return of 7.3%.
The stock was trading unchanged at 260.00 pence Thursday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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