CBRE Investment Management Completes New Sustainable 188-Bed Premier Inn Hotel in York

CBRE Investment Management, on behalf of CBRE UK Property PAIF (“the Fund”), has completed the development of a new 188-bed Premier Inn hotel in York. Premier Inn has signed a lease agreement for 25 years on the building.

CBRE Investment Management’s (“CBRE IM”) main contractor, Clegg Construction, constructed the new, highly sustainable, four-storey building on a one-acre plot, formerly the location of a retail warehouse leased by Carpetright.

The hotel is in a prime location on Foss Islands Road, close to York’s historic city centre, where many of the city’s key tourist attractions, including York Minster and Jorvik Viking Centre, are situated.

The hotel has been constructed to high sustainability standards, featuring multiple energy-saving technologies, such as air source heat pumps, heat recovery ventilation systems, LED lighting, photovoltaic panels, and electric vehicle charging points. Accordingly, the building has achieved an EPC A rating and is due to achieve a BREEAM rating of “Very Good”.

“We expect growth in the hotels and catering sector to outpace the wider economy during the next five years,” said Jamie Philips, Fund Manager for UK Property PAIF at CBRE IM. “Tourism supports a significant number of jobs in York and given the strength of the city as a destination for tourists, combined with its current undersupply of hotel beds, the addition of a new modern and sustainable hotel will help to bolster York’s businesses and economy. This project sits firmly within the Fund’s strategy, providing a great opportunity to thoughtfully invest in and repurpose an existing asset, in order to create a long and sustainable cash flow for our investors.”

“We are tremendously proud to have delivered such a sustainable Premier Inn hotel for CBRE Investment Management and Whitbread PLC,” added Clegg Construction Managing Director, Michael Sims. “The site is a historically sensitive city centre location in York, and I am delighted with how the Clegg Construction team conducted themselves with minimal disruption to local businesses and residents. The scheme achieved consistently high Considerate Constructors Scheme scores in audits taken throughout the contract. More than 80% of the workforce travelled 30 miles or less per day to reach the site – demonstrating our commitment to supporting the local community and to sustainability.”

“As a company, Clegg Construction is very happy to have now handed over this new development which I am sure will be an asset to York and its tourism and business communities, along with the local economy.”

About CBRE Investment Management

CBRE Investment Management is a leading global real assets investment management firm with $144.0 billion in assets under management* as of March 31, 2024, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

The CBRE UK Property PAIF

The CBRE UK Property PAIF (“Fund”) is an open-ended fund structured as a Property Authorised Investment Fund (PAIF). The Fund provides diversified exposure to high quality real estate located throughout the UK, across a range of sectors including offices, industrial and retail. It is open for investment to a wide range of institutional investors, both international and from within the UK. The Fund seeks to provide long-term out-performance against its benchmark, the MSCI/AREF UK Quarterly Property Funds – All Balanced Property Fund Index.

CBRE UK Property PAIF is authorised by the Financial Conduct Authority (FCA). This Fund is for professional or qualifying investors who are eligible to invest in a Qualifying Investor Scheme (QIS) within the meaning of the FCA Rules only. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. It is not available to ordinary retail investors. CBRE Investment Management (UK Funds) Limited obtained its Alternative Investment Fund Managers Directive (AIFMD) licence from the FCA on 15 July 2014 and is the alternative investment fund manager (AIFM) for the CBRE UK Property PAIF. The information contained herein is a marketing communication and is not a contractually binding document. Do not base any final investment decision on this document alone. Please see the Prospectus/Incorporation for full details about the features of the fund, prior to making a decision as to whether to invest in the fund.

No offer or solicitation is being made to US investors by virtue of this release. This release does not constitute an offer to sell or a solicitation of any offer to buy shares in CBRE UK Property PAIF, or any other product, and may not be used or relied upon by US investors for making any investment decision. Any offer or solicitation will be made only by means of a confidential Prospectus and related application which will only be provided to qualified investors.