Investment sale of Richmond’s Franco Manca
February 8, 2018
Leisure investment specialists Coffer Corporate Leisure has advised a private client on the investment sale of 8 Red Lion Street, Richmond, let to the Fulham Shore-owned pizza business Franco Manca.
Red Lion Street comprises the former Richmond Police Station which was developed in 2016 to form a restaurant with 19 residential apartments above. The restaurant is let on a 15 year lease.
The sale, which concerned the commercial elements only of the property, was transacted off-market to a private family's investment vehicle for a consideration of £3.25m which reflected a Net Initial Yield of 4.05%.
Jack Silvani, Director at Coffer Corporate Leisure said, "We are continuing to see further polarisation in the leisure investment market, particularly in the restaurant sector. There has been significant discussion concerning the difficulties the casual dining segment of the market is facing: rising costs, staffing shortages and increased competition. For two restaurant groups, Byron and Jamie's Italian, this has led to respective restructurings as the chains look to consolidate their estates and dispose of loss-making sites. These high profile CVAs have fueled concern amongst property investors that the occupational market for casual dining is beginning to weaken.
"However, we are observing increased demand for prime stock which is continuing to strengthen investment yields for the best assets. Conversely, yields for secondary sites outside of London and major cities are softening."