Guernsey-based property finance investor, Alpha Real Trust, has acquired a Travelodge hotel in Wadebridge, Cornwall for £4.25 million including acquisition costs.

The property is leased to Travelodge Hotels Limited, and has an 20 year unexpired lease term. Under the lease, the tenant is responsible for building maintenance and the passing rent of £0.25m p.a. has inflation linked adjustments, reflecting a yield of 6.1% p.a.

ART has acquired the asset for cash.

The 55-bedroom property is held freehold and is situated on the outskirts of Wadebridge in the county of Cornwall. The hotel is in a well-connected location in close proximity to the A39.

This acquisition offers the Company the potential to benefit from a long term, predictable, inflation-linked income stream whilst contributing additional diversification to ART’s portfolio. In addition, the investment offers the potential for associated capital growth.

The Company remains focussed on asset-backed lending, debt investments and high return property investments in Western Europe that are capable of delivering strong risk adjusted cash flows.