Investment sale of Cote Restaurant, Parsons Green

Investment sale of Cote Restaurant, Parsons Green

April 18, 2016

On behalf of a private UK investor, specialist leisure investment advisers Coffer Corporate Leisure has completed the sale of the freehold interest in 45-47 Parsons Green Lane, South West London. The purchaser, a Cambridge College represented by Bidwells, paid a consideration of £3.75million, reflecting a net initial yield of 3.20%. The property was sold subject to an occupational lease to Cote Restaurants Limited.

Jack Silvani, Associate Director, Coffer Corporate Leisure, said, “The price achieved reflects a sharp Net Initial Yield representative of a very strong market for high quality, income producing assets of this calibre. I’m sure the investment will prove to be an excellent acquisition in the long term.

The interest generated by this disposal is demonstrative of a trend we are seeing in the leisure investment market. There has been much talk of a slow-down in the wider market, predominantly fuelled by the potential impact of ‘Brexit’. However, for well-let, income generating assets with strong fundamentals we consider the market to be as hot as ever. In Q1 2016 we exchanged contracts on five separate assets for Net Initial Yields in the 3%’s. It is a great time for long term holders of London property to consider divesting.”

Saul Western, Partner, Bidwells said “This acquisition fulfils the College’s investment strategy to acquire assets with long term reversionary potential in core areas”.

Cote Restaurants Limited is a casual dining restaurant group operating 71 sites throughout the UK. The highly regarded French brasserie was created by a quartet of investors, including serial restaurateur Richard Caring, in Wimbledon in 2007. Under Caring’s ownership it grew to 45 sites in six years and was sold in September 2013 to Close Brothers Private Equity for a reported £100m. The group continued to expand under CBPE’s ownership and just two years later was sold for a reported £250m to current owner private equity firm BC Partners. Cote possesses a strong presence in London (over 40% of Cotes 71 sites are within the Capital) and the South East where restaurant performance has been buoyant over the past 12 months.

Coffer Corporate Leisure advised the Vendor. Bidwells advised the Purchaser.