Disposal of £6m pub investment package

Disposal of £6m pub investment package

August 6, 2015

Coffer Corporate Leisure has completed the sale of four freehold pubs let to Stonegate Pub Company Limited or its subsidiaries to private clients. The total purchase price for the four sites was £6.17 million.

The four properties include a Yates’s and three unbranded pubs, all with index-linked uplifts throughout their 25-year term and a guarantee from the Stonegate covenant.

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

Mark Sheehan of Coffer Corporate Leisure said “This package sale demonstrates there is growing appetite for regional assets let to good quality covenants.

We believe there is still excellent value offered by the pub investment market, particularly in the regions. Some of these assets have served as public houses for hundreds of years and are typically in excellent locations with consistent and strong trading profiles. They tend to dominate their local environment and are likely to continue to trade in the same manner for another 100 years.

That said, it is absolutely crucial that when an investor considers a pub investment, or any leisure investment, they understand how the asset performs – both from a historical and current basis, together with its future potential.

Coffer Corporate Leisure acted for the Vendor. Acuitus acted on behalf of the private purchasers.