McAleer & Rushe has sold a planned new four-star hotel in Newcastle City Centre to UK Commercial Property Trust Limited (UKCPT) for £32 million.

The deal is advised by Standard Life Investments for £32.7 million on a forward funding basis, reflecting a market investment yield of 4.99% on completion.

The six-storey Maldron Hotel forms part of the contractor's wider £75m mixed use regeneration scheme in the city, which includes a 575 student bed accommodation operated by Unite Group along with ancillary retail units.

-- Advertisement --

Due to be completed in March 2019, the 265-bed hotel will include extensive bar, restaurant and business meeting facilities.

Stephen Surphlis, Property Director of McAleer & Rushe, said: "The new Maldron hotel and the complete mixed-use scheme is a significant project and will support Newcastle's continued economic development by attracting both business and leisure visitors to the heart of the City. We are looking forward to working with Standard Life Investments and Dalata, for whom we are delivering numerous hotel projects in the UK & Ireland."

Will Fulton, Fund Manager at Standard Life Investments, added: "We look forward to working with McAleer & Rushe on the delivery of this new scheme in Newcastle. Dalata and its flagship Maldron brand are an exciting, well managed, high quality, competitive hotelier which we believe will compete well in the Newcastle market, a home to leading universities, a thriving business community and leisure scene."

(LM/MH)