Acquisition of £17m London Pub investment portfolio
May 13, 2015
Coffer Corporate Leisure has advised LaSalle Investment Management on the acquisition of a 7-strong portfolio of freehold pubs let to Enterprise Inns for a total purchase price of £17.3 million reflecting a net initial yield of 4.1%.
The seven properties are located in some of London’s most popular areas including Chiswick, Clapham, Shoreditch, Southwark, Tooting and Wandsworth. Each property is let to Enterprise Inns plc until 2046 and benefits from RPI-linked uplifts throughout the term with a collar and cap of 3% and 4%, which increase annually in January 2016 and five yearly thereafter.
Enterprise Inns plc is a FTSE 250 company and the UK’s largest pub company with c.5,350 pubs across England and Wales.
Lawrence Telford of Coffer Corporate Leisure said “This is a high quality portfolio of public houses located in some of the most desirable non-central locations in London. Our mandate was to provide specialist leisure advice concerning the covenant, underlying property value, and crucially, analysis of the trading performance of the underlying businesses.
Investors buying a leisure investment should always take advice on the trading performance and future growth prospects of the subject property. Assets that trade buoyantly consistently deliver superior long-term rental growth and benefit from strong demand from alternative occupiers. This combination leads to good capital growth and increases saleability in the future.”
Coffer Corporate Leisure acted jointly with Finn & Co on behalf of LaSalle Investment Management. CBRE advised the vendor Blackstone.