TAB has launched its new fractional ownership model, TAB Property, with the purchase of two Travelodge hotels located in Chigwell and Snaresbrook.
TAB Property allows investors to commit as little as £1,000 to part-own real estate assets and earn returns from both rental income and capital growth without having to take on debt.
As part of the arrangement, TAB handles the hassle associated with property acquisition, management, and tenant requirements as well as reporting, and investors can enjoy the benefits of property investment without incurring significant personal debt.
To protect investors, TAB also keeps a reserve fund for unforeseen costs, such as void periods, maintenance and repairs.
The Travelodge hotel in Chigwell, Greater London was bought for £3.68m. The purpose-built property comprises 34 beds across two storeys.
The second Travelodge hotel was bought for £2.385m, located in Snaresbrook, Greater London. The 7,303 sq.ft purpose-built property sits across two storeys.
Both properties are expected to provide investors with a 7.62% net yield, resulting in a total annual return of £462,000, with an additional 2.5% projected capital growth.
Duncan Kreeger (pictured), CEO and founder of TAB, said: “As an advocate for democratising real estate investment, I’m excited to introduce our latest fractional ownership product, following our acquisition of Travelodge Hotels in Chigwell and Snaresbrook.
“Our platform empowers users to tailor their property ownership to meet specific goals, allowing them to diversify their investment portfolio.
“We’ve crafted an intuitive, user-friendly experience aimed at widening access to property investment, enabling more individuals to tap into the returns traditionally reserved for those with substantial capital.”
He added: “Our experienced team is constantly looking for new investment opportunities, and these acquisitions are just the beginning for TAB Property.”
