Stonegate Pub Co Sells Three Central London Pubs to CBREGI

December 4, 2015

Stonegate Pub Company, the TDR Capital-­backed group, has completed the sale of three central London-­based freehold sites to CBRE Global Investors, as part of a sale and leaseback process.

The package, which comprises the St James Tavern in Piccadilly? The Duke of Wellington in Wardour Street, Soho? and The Admiral Duncan in Old Compton St, Soho was acquired for a sum that further reduced the level of investment made by Stonegate in acquiring the TCG sites.

Property investment specialists Coffer Corporate Leisure acted on behalf of the vendor. The subject pubs were acquired as part of the acquisition of 53 pubs from TCG Group.

Mark Sheehan, Managing Director, Coffer Corporate Leisure, said, “This was a rare opportunity to acquire three very centrally located public house investments with a terrific covenant. The significant shortage of stock in central London makes this one of the few deals of its kind in 2015. London is certainly the world’s most sought after location for high quality leisure real estate investment. In the pubs sector, long lease terms mean investors are buoyed by the ability to acquire assets let to operators for an assured long-term income.”

James Horgan, Director, Separate Accounts Group, CBRE Global Investors said, “We are delighted to have successfully acquired these three Central London freehold properties that all had the rare characteristics of long leases reviewed to the higher of RPI or open market rents, as well as superior vacant possession values to purchase prices. This type of property is precisely the type of investment several of our clients are currently looking for.”

Charles Curtis, Director, Finn and Company who acted for the CBREGI said, “These types of assets do not come onto the market very often. The long dated RPI linked income together with the under lying vacant possession values of these Central London properties, make this investment a very secure and excellent buy for CBRE Global Investors.”

Stonegate were a well organised vendor and after a short but competitive marketing process we agreed terms with CBRE Global Investors who moved to execute very quickly.

All three properties will be let to Stonegate on new 30 year leases, providing index-linked growth throughout the term.

Coffer Corporate Leisure advised Stonegate. Finn and Company advised CBRE Global Investors with occupational advice provided by Savills Licensed Leisure.