Purchase of £5.75m London pub portfolio

September 30, 2019

Coffer Corporate Leisure has advised a private client on the purchase of three London pub investments. The properties, located in Kensington, Islington and Richmond are all let on long leases to EI Group (formerly Enterprise Inns) the largest pub company in the UK. The price of £5.75m reflected a Net Initial Yield of 3.49%.

Jack Silvani, Director at Coffer Corporate Leisure said, “Over the past 5 years we have observed the public house investment market grow from a secondary asset class to a mature market which most UK institutions and many private investors have exposure to. The pub market is robust, defensive and rides economic turbulence that is felt in alternative sectors. Pubs are a deeply ingrained part of British culture which have traded in a relatively similar capacity for hundreds of years and will no doubt continue to do so.

This sentiment and confidence in the pub investment market is shared by investors on a larger scale – this summer both EI Group plc (c.4,000 pubs) and Greene King plc (c.2,700 pubs) have been the target of corporate takeovers – the latter at a 50% premium to share price. The same logic applies – these are resilient investments which will produce steady income in the long term.”

TT&G Partners acted on behalf of the Vendor, a private client. Coffer Corporate Leisure acted on behalf of the purchaser, a consortium of investors.