Disposal of £24m pub investment portfolio

November 26, 2014

Coffer Corporate Leisure, on behalf of vendor PFA Acquisitions, has completed the sale of a second portfolio of freehold pubs let to Stonegate Pub Company Limited or subsidiaries benefiting from a guarantee by the full Stonegate covenant. The seventeen pub portfolio has been acquired by real estate investment company Aprirose in an off market transaction totalling £23.5 million, which reflects a 6.65% net initial yield.

Seven of the properties trade under the Slug & Lettuce and Yates's brands with the remaining ten consisting of unbranded pubs located throughout England and Scotland. The leases benefit from indexed uplifts throughout their 25 year terms. The pubs are located in Putney, Croydon, Southend, Chesterfield, Camberley, Lancaster, Lincoln, Blackpool, Derby, Leicester, Glasgow, Chatham, Swindon, Blackpool, Newport, Eastleigh and Chorley.

In June (2014) Coffer Corporate Leisure sold a Stonegate-let portfolio of fifteen pubs to OLIM Property Limited for £28.27 million reflecting a 6.31% net initial yield.

Mark Sheehan, Managing Director of Coffer Corporate Leisure said, "High quality, town centre pubs with a substantial covenant are desirable assets. Our understanding of the key active investors in the market helped PFA Acquisitions to quickly identify the buyer and complete the transaction whilst maximizing return."

"Stonegate is a strong operator with excellent assets which trade well. Aprirose will benefit from an excellent covenant, long term growth and the acquisition of prominent pubs in their respective localities."

Sheehan added: "Good leisure investment assets remain attractive to buyers seeking secure long-term income with visibility on underlying trading. We expect to see further leisure investments assets changing hands in the near future."

Stonegate Pub Company is one of the largest managed pub companies in the UK with an estate of approximately 620 pubs including 270 freehold and long leasehold pubs.