LaSalle Purchases Six Pubs for £17.8m

August 8, 2016

LaSalle
Investment Management, the leading real estate investment manager, has
completed the purchase of a portfolio of six high quality pubs for a total of
£17.8 million, representing a net initial yield of 4.75%. The portfolio was
purchased from real estate investment company, Aprirose.

The pubs are let on long leases with a weighted
average unexpired lease term of over 25 years to subsidiaries of the three
major pub operators Stonegate Pub Company, Punch Partnership and Spirit Pub
Company.

The portfolio comprises:

  • Fox and Hounds, Putney, London
     
  • Albion, Islington, London
  • Malt House, Brindley Place,
    Birmingham
  • Green Dragon, Croydon
  • Royal Oak, Farnham Common,
    Buckinghamshire
  • The Old Bell, Harpenden,
    Hertfordshire

Shaun
Reed, National Director, LaSalle Investment Management, said:
“The
acquisition is in keeping with our client’s strategy of acquiring good quality
assets in the south east of England with long leases that are subject to either
fixed or inflation linked rent reviews. Alternatives continue to be a strong
area of interest and the leisure sector in particular is yielding some
interesting opportunities for clients looking for long term income generating
assets. The portfolio will continue to operate as pubs, although they all have
strong underlying values for alternative uses.”

Mark Sheehan,
Managing Director, Coffer Corporate Leisure, said:
“In the current economic climate, pubs are amongst
the most robust and defensible of all commercial property assets. Good assets
have a very long trading history through various property cycles. Quality pubs
are often held on long leases, providing investors with the security of long
term income and the flexibility of underlying property value. This particular portfolio
was secured off market to satisfy a specific requirement. This is the sixth
portfolio we have advised on in the last eighteen months. We expect the market
to see further transactional activity.”

The vendor, Aprirose, is a private real estate
investor with over £1 billion of real estate under management including a
strong focus on the leisure, hotel and retail sectors. Manish Gudka, CEO of Aprirose Real Estate Investment, said: “We are
pleased to conclude another off-market sale to LaSalle in keeping with our
strategy of working with the leading players in the property industry.”

Coffer Corporate Leisure acted on behalf of LaSalle as investment agents
with Forsters as advising solicitors.