Coffer Corporate Leisure has
completed the investment sale of Yates’s, 34 Queen Square, Wolverhampton on
behalf of C2 Capital.

This significant regional pub
transaction saw the property sell for £3.625 million to Cannon Street Capital,
reflecting a Net Initial Yield of 6.9%.

The substantial freehold building
is arranged over ground, basement and four upper floors. The property is let in
its entirety on an unexpired term of 24.5 years to Hops Pub Company, guaranteed
by Stonegate Pub Company, off a passing rent of £265,000  per annum with
five yearly rent reviews to RPI subject to a collar and cap of 1% and 4%
respectively.

Stonegate Pub Company are the
largest privately owned managed pub company in the UK with a variety of highly
successful licensed brands including Yates’s and Slug & Lettuce.

Lawrence Telford, Director, Coffer
Corporate Leisure, said: “In the last six months we have experienced investors
look increasingly outside of London to the regions to find value. This
transaction demonstrates the strong demand for high quality regional assets,
particularly with index-linked reviews providing explicit growth. Underpinned
by strong underlying trading performance and inherent value, the market for
assets of this type is the most buoyant we have seen since the 2008 downturn.”

Coffer Corporate acted for the
vendor C2 Capital. The purchaser, Cannon Street Capital, was represented by
Smith Price.