Real estate company Aprirose has sold its portfolio of 13 pubs, operated by pub company Stonegate, to investment firm BlackRock for £23m.
The properties have long, unbroken leases with 22.5 years unexpired terms and a total passing rent of around £1.35m per annum, reflecting a net initial yield of 5.5%.
The portfolio includes: Slug and Lettuce Southend on Sea; the Surrey Arms, Camberley; the Station in Eastleigh, Hampshire; Slug and Lettuce Derby; Yates’s, Leicester; the Prince of Wales in Chatham, Kent; the Prince of Wales in Chorley, Lancashire; the Burlington in Chesterfield, Derbyshire; the Merchant, Glasgow; the Mailbox, Lincoln (pictured); the Crafty Scholar, Lancaster; Yates’s, Blackpool; and the Castle, Blackpool.
Coffer Corporate Leisure advised Aprirose. BlackRock was advised by Fleurets.
Mark Sheehan, managing director, Coffer Corporate Leisure, said: “The public house market in particular is in huge demand with appetite significantly outstripping supply. Institutional investors are attracted by the long leases, index-linked uplifts, strong underlying property value and liquidity of pub assets. Lack of stock remains our biggest issue.”
Geoffrey Shaw, portfolio manager at BlackRock, said: “Pubs provide a great diversifier for our clients as the demand drivers have a low correlation to other sectors such as hotels, offices or car parks. The assets are run by a very experienced management team and the individual lot sizes make the properties very liquid.”
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