Acquisition of PRZYM, Cardiff
February 16, 2022
Coffer Corporate Leisure has advised AEW UK REIT plc on the acquisition of PRZYM, Cardiff – a prime and iconic late-night venue in the heart of the city centre.
The purchase of £3.63 million, reflected a Net Initial Yield of 7.72%.
The freehold investment comprises an attractive Grade II listed building arranged over basement, ground and first floor levels, totalling c.40,000 sq ft. The property, let to REKOM, has been subdivided into two separate leisure units trading under two different well-known brands – Steinbeck & Shaw and PRZYM.
REKOM is one of the largest late-night bar groups in Europe with more than 130 bars and nightclubs across Denmark, Norway, Finland, and the UK.
Mark Sheehan, Managing Director Coffer Corporate Leisure, said “This is a very well-known nightclub and is Cardiff’s number one late-night venue. The business has experienced strong trading levels since re-opening post-COVID and we are seeing renewed optimism towards the sector. AEW identified this asset as a great opportunity to capitalise on this recent buoyancy and has strong confidence in Cardiff as a robust macro location with a prominent late-night and leisure circuit.
We are still seeing huge demand for assets with good fundamentals and strong underlying value. For 2022, we expect continued activity in the sector as frustrated capital continues to look for a home”.
Alex Short, Portfolio Manager AEW UK REIT plc, commented “We are pleased to have acquired the PRYZM Nightclub in Cardiff following the removal of COVID restrictions in Wales permitting the reopening of leisure facilities. It has been purchased for a price that will deliver a strong initial yield which will be immediately accretive to shareholder returns, and the tenant is up to date with its rental commitments despite the disruption to trade caused by the pandemic”.
Coffer Corporate Leisure acted for the purchaser, AEW UK REIT plc. Knight Frank acted for the Vendor, an UK institution.