Coffer Corporate Leisure has advised a private client on the sale of 26 Mosley Street – a prime restaurant investment in the heart of Newcastle.

The restaurant is let to FTSE250 listed Mitchells & Butlers, one of the UK’s largest hospitality operators, trading under their Miller & Carter steakhouse concept.

The price of £3.2million reflected a Net Initial Yield of 5.35%.

Jack Silvani, Director at Coffer Corporate Leisure said “We have seen limited activity in the restaurant investment market this year. Whilst initially this was attributed to lack of confidence in the casual dining sector, we believe it is now down to the shortage of quality stock.

The underlying property fundamentals are key more than ever – well-configured units in good locations will always be relettable. Rents need to be sensible and serviceable. Many investors would rather buy the best sites at significantly sharper yields than secondary sites which could prove challenging down the line. The former will always be in demand and should prove to be safe, long-term investments.”

Coffer Corporate Leisure acted on behalf of the vendor, a private client. CBRE acted on behalf of the purchaser, a private client.