The combined sale of a number of pub packages let to Stonegate Pub Company has topped the £100m, after the latest seven-strong portfolio of freehold pubs let to the managed operator were acquired for £9.7m.
The portfolio, which was sold by PFA Acquisitions, was acquired by OLIM Property Limited for its discretionary pension fund and investment trust clients, at a net initial yield of 7.53%. This follows OLIM Property’s purchase of 15 Stonegate pubs for £28.27m last June.
Mark Sheehan, managing director of Coffer Corporate Leisure, which has acted on behalf of PFA across the portfolio sales, told M&C Report: “Property investors very much like the pubs sector because they acquire assets let to operators for the long term. There is, however, a shortage of stock in the market.”
The latest portfolio contains two Yates’s and five unbranded pubs in Bedford, Bournemouth, Cleethorpes, Leigh, Luton, Prestatyn and Selby with a total rent of c£773k.
The leases also benefit from indexed uplifts throughout their 25 year term. Stonegate Pub Company is one of the largest managed pub companies in the UK with an estate of about 620 pubs including 270 freehold and long leasehold pubs.
The purchase completed 10 days after it was agreed. Fleurets, Kitchen La Frenais Morgan and Shepherd and Wedderburn acted for the purchasers, with Coffer Corporate Leisure and Charles Russell Speechlys for the vendors.
Last month, a 23-strong package of pubs let to Stonegate was sold by its private equity backer TDR Capital to real estate investment company Mansford for c£30m.
The price paid for the pubs, which were sold through TDR subsidiary’s PFA Acquisitions, reflected a circa 7% yield.
Last November, TDR sold a portfolio of 17 freehold pubs let to Stonegate to real estate investment company Aprirose in an off market transaction totalling £23.5m, which reflected a 6.65% net initial yield.
Mark Sheehan, managing director of Coffer Corporate -Leisure
