OLIM Property Limited, the property investment managers, has acquired eight restaurants in a sale and leaseback transaction with Prezzo for a price in excess of £10m, M&C Report has learnt.
The properties, six in East Anglia and two in Dorset, are for OLIM Property’s discretionary pension fund and investment trust portfolios.
Seven of the restaurants are freehold, trading as Prezzo, with one Chimichanga long leasehold. Rent reviews are indexed throughout the 30-year term.
The purchase completed 10 days after it was agreed. CBRE and Glovers acted for the vendor, with Coffer Corporate Leisure and Shepherd and Wedderburn acting for the purchasers.
M&C Report revealed last month that the TPG Capital-owned Prezzo had placed a package of freehold sites on to the market as part of sale and leaseback process.
TPG took the c250-strong group private earlier this year in a £303.7m deal.
Although sale and leaseback deals have been a feature of the pub sector over the last few years, they have been utilised less in the restaurant sector due to its leasehold-focused nature.
It is thought that other restaurant operators may follow Prezzo’s lead and also look at unlocking freehold opportunities in their estates.
Last year, TPG said it intended to support and strengthen Prezzo’s management team and continue to develop and execute management’s longer term strategy for the group.
It said intends to engage an experienced chairman for the company to provide support to the Prezzo management team.
OLIM Property has acquired 22 pubs let to Stonegate Pub Company over the last year for a total sum of £38m.
