Sale of c.£17million Pub Investment Portfolio

Sale of c.£17million Pub Investment Portfolio

January 11, 2024

Coffer Corporate Leisure has advised an institutional client on the sale of six long-let public house investments. The properties are located in major towns/cities across the UK including London, York and Nottingham. All properties are let to either Greene King or Marston’s Plc – the majority trading under the latter’s Pitcher & Piano concept.

The properties were sold in two tranches with a combined sale price of £16,750,000 reflecting a Net Initial Yield of 6.91%.

Jack Silvani, Director at Coffer Corporate Leisure said “2023 was a frenetic year in the pub investment sector. Whilst the values of prime assets in London and major cities remained relatively robust, price adjustments for secondary assets were particularly severe. However, the year ended in a flurry of activity, arguably as experienced investors saw value in the sector, perceiving that pricing had bottomed out.

We anticipate this activity will gain further momentum in 2024 and have a positive effect on pricing. It is likely that there is an uptick in larger/portfolio transactions as demand in the sector increases and improves liquidity.”

Coffer Corporate Leisure advised the vendor, a UK institution. Ed Sandall, Savills, advised the purchaser of the Marston’s portfolio.