Investment sale of Yates’s, Wolverhampton

May 16, 2016

Coffer Corporate Leisure has completed the investment sale of Yates's, 34 Queen Square, Wolverhampton on behalf of C2 Capital.

This significant regional pub transaction saw the property sell for £3.625 million to a private investor, reflecting a Net Initial Yield of 6.9%.

The substantial freehold building is arranged over ground, basement and four upper floors. The property is let in its entirety on an unexpired term of 24.5 years to Hops Pub Company, guaranteed by Stonegate Pub Company, off a passing rent of £265,000  per annum with five yearly rent reviews to RPI subject to a collar and cap of 1% and 4% respectively.

Stonegate Pub Company are the largest privately owned managed pub company in the UK with a variety of highly successful licensed brands including Yates's and Slug & Lettuce.

Lawrence Telford, Director, Coffer Corporate Leisure, said: "In the last six months we have experienced investors look increasingly outside of London to the regions to find value. This transaction demonstrates the strong demand for high quality regional assets, particularly with index-linked reviews providing explicit growth. Underpinned by strong underlying trading performance and inherent value, the market for assets of this type is the most buoyant we have seen since the 2008 downturn."

Coffer Corporate acted for the vendor C2 Capital. The purchaser, a private investor, was represented by Smith Price.