London-listed hotel specialist MWB has announced the sale-and-leaseback of its Malmaison hotel development in Aberdeen for £16.1 mln (EUR 18 mln). MWB said that the investment volume reflected a yield it considered to be a strong outcome in the current market environment.

The proceeds will go towards paying down debt.

The 5,358 m2 metre property was sold to, and will be leased back from, CIP Property (AIPT) on behalf of Citibank International plc as trustee for Aviva Investors Property Trust.

On completion, the 80-room property will be leased back by Malmaison (Aberdeen) for an initial annual rent of £1.2 million. Malmaison (Aberdeen) Limited will enter into a 35 year lease - with a tenant's option to take a further lease for a period of 35 years. Five-year rent reviews will be based on compounded indexation. A market rent review will take place at the end of the 35th year in the event that Malmaison exercises its option to take the further 35-year lease.

MWB sold four of its Malmaison hotel projects at a big discount to pay down debt in a sale-and-leaseback deal with funds managed by Germany's Deka Immobilien and UK-based Legal and General Property (LGP). Deka and LGP paid £86.8 mln (EUR 99 mln) in cash for the assets.