The commercial partnership which in 2014 saw NEC Group's National Indoor Arena rechristened the Barclaycard Arena will soon expire
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Property investment firm Secure Income REIT is to acquire the SMG-managed arena from Mansford, in a deal that also includes several hotels and pubs
By Jon Chapple on 16 Mar 2018
British property company Secure Income REIT has agreed to buy Manchester Arena, alongside several other hospitality assets, in a deal worth £436 million.
In a 9 March filing with the London Stock Exchange, Secure Income REIT (real-estate investment trust) – which also owns 19 private hospitals, 55 hotels and popular UK theme parks Alton Towers and Thorpe Park – said it had agreed to buy off-market two portfolios worth a combined £436m (€494m), which in addition to Manchester Arena include another 76 Travelodge hotels, 18 freehold pubs and the Brewery, an event space in Chiswell Street, central London.
The 21,000-capacity venue (pictured), Europe’s largest indoor entertainment arena, was previously owned by Mansford, a private-equity property firm which also owns the 3,000-cap. SkyDome Arena in Coventry. Manchester Arena is operated by SMG Europe.
“The board and management team are excited by the opportunities”
“We are pleased to announce the proposed purchase of two separate portfolios at a total cost of £436 million, offering an attractive net initial yield of 6% and an average unexpired lease term of over 20 years with 86% of the income offering RPI protection plus a further 13% with fixed uplifts,” says Secure Income chairman Martin Moore.
He adds that “the board and management team are excited by the opportunities presented by the new transactions”.
The most recent valuation of Secure Income’s portfolio, in June 2017, put its value at £1.72bn.
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