Pension fund buys Southwark Travelodge for £56.3 million

The Travelodge London Southwark opened in 2008 in Union Street. Ground floor retail tenants include Carlo's Kitchen and Pret a Manger.

Lothbury Investment Management has bought the hotel for a major UK pension fund.

"This is an important purchase for the fund," said Mike Toft, senior fund manager and executive director of Lothbury Investment Management.

"With 30 years remaining and reviews linked to RPI, with no cap, it has a very attractive lease structure and excellent residual value that fits well within the portfolio of prime assets held for this major UK pension fund.

"Its location next to Southwark Underground Station and close to the south bank of the River Thames is well established but also rapidly evolving, so will provide the fund with attractive longer term redevelopment opportunities."