Aprirose, the real estate investment company, has sold a six-strong portfolio of freehold pubs to LaSalle Investment Management, for a total of £17.8m, representing a net initial yield of 4.75%.
The pubs are let on long leases with a weighted average unexpired lease term of over 25 years to subsidiaries of Stonegate Pub Company, Punch and Spirit Pub Company.
The portfolio comprises the Fox and Hounds, Putney; the Albion, Islington; Malt House, Brindley Place, Birmingham; the Green Dragon, Croydon; the Royal Oak, Farnham Common, Buckinghamshire and the Old Bell, Harpenden, Hertfordshire.
Mark Sheehan, managing director of Coffer Corporate Leisure, which acted for LaSalle as investment agents, said: “In the current economic climate, pubs are amongst the most robust and defensible of all commercial property assets. Good assets have a very long trading history through various property cycles. Quality pubs are often held on long leases, providing investors with the security of long term income and the flexibility of underlying property value. This particular portfolio was secured off market to satisfy a specific requirement. This is the sixth portfolio we have advised on in the last eighteen months. We expect the market to see further transactional activity.”
Shaun Reed, national director at LaSalle, said: “Alternatives continue to be a strong area of interest and the leisure sector in particular is yielding some interesting opportunities for clients looking for long term income generating assets.
“The portfolio will continue to operate as pubs, although they all have strong underlying values for alternative uses.”
Manish Gudka, chief executive of Aprirose, said: “We are pleased to conclude another off-market sale to LaSalle in keeping with our strategy of working with the leading players in the property industry.”
