Caterersearch.com - January 14, 2011
Enterprise Inns has sold 29 central London pubs to Max Property Group for £42.56m.
The deal, brokered by CB Richard Ellis, will see the properties leased back to Enterprise on a 35-year lease with an initial rent of £2.975m per year (7.0% cap rate.)
David Batchelor, senior director at CB Richard Ellis and head of Leisure and Alternative Investments commented: “The demand from institutional investors for well located real estate is well known. This transaction shows that good pubs are an excellent and intelligent alternative to more traditional asset classes and that there is a keen interest among mainstream investors. We anticipate that 2011 will see significant portfolio volume in both the Leisure and Healthcare markets where we specialise.”
The pubs, all of which are freehold, include: the Crown in Chelsea, the Famous Cock Tavern in Islington, Frog & Forget-Me-Not in Clapham and Thornbury Castle in Marylebone.
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