Leisure investment
specialists Coffer Corporate Leisure has advised a private client on the
investment sale of 8 Red Lion Street, Richmond, let to the Fulham Shore-owned
pizza business Franco Manca.

8 Red Lion Street comprises
the former Richmond Police Station which was developed in 2016 to form a
restaurant with 19 residential apartments above. The restaurant is let on a 15
year lease.

The sale, which concerned
the commercial elements only of the property, was transacted off-market to a
private family’s investment vehicle for a consideration of £3.25m which
reflected a Net Initial Yield of 4.05%.

Jack Silvani, Director at Coffer Corporate Leisure
said, “We are continuing to see further polarisation in the leisure
investment market, particularly in the restaurant sector. There has been
significant discussion concerning the difficulties the casual dining segment of
the market is facing: rising costs, staffing shortages and increased
competition. For two restaurant groups, Byron and Jamie’s Italian, this has led
to respective restructurings as the chains look to consolidate their estates
and dispose of loss-making sites. These high profile CVAs have fueled concern
amongst property investors that the occupational market for casual dining is
beginning to weaken. However, we are observing increased demand for prime stock
which is continuing to strengthen investment yields for the best assets.
Conversely, yields for secondary sites outside of London and major cities are
softening.”