Investment sale of trophy public house, Fulham

Investment sale of trophy public house, Fulham

January 29, 2015

Coffer Corporate Leisure has sold the freehold interest of The Slug public house, 490 Fulham Road, SW6 on behalf of a private vendor.

The property, which comprises a public house arranged over three levels, is let in its entirety to Stonegate Pub Company for 16 years. The current passing rent is £158,875 per annum. Stonegate Pub Company is the fifth largest managed pub company in the UK operating over 620 pubs under a handful of brands including the Slug and Lettuce and Yates’s.

The asset was acquired by a private individual for a consideration of £3.3 million, reflecting a net initial yield of 4.55%.

Lawrence Telford, director at Coffer Corporate Leisure said “This is a sizeable asset a short distance from Fulham Broadway station. The property occupies a substantial footprint in a rapidly improving location which is attracting a high volume of inward investment. The pub benefits from a long lease to a Grade A covenant with a strong balance sheet.

The market for assets of the ilk is extremely buoyant at present. In the past 12 months we have transacted over a dozen London pub investments and in most cases achieved prices well in excess of our clients’ expectations.”