Stonegate Pub Company, the TDR Capital-backed group, has placed a four-strong package of central London-based freehold sites, which it earlier this week acquired from TCG, on to the market as part of sale and leaseback process, M&C has learnt.
The package comprises the St James Tavern in Piccadilly; the Duke of Wellington in Wardour Street, Soho; the Admiral Duncan in Old Compton St, Soho; and the Bucks Head in Camden High Street, and is thought to have a combined value of £25m to £30m.
The sites, which will are being marketed by property investment specialists Coffer Corporate Leisure and come with significant underlying property value, are available with the Stonegate Pub Company covenant.
Earlier this week, M&C revealed that Stonegate had agreed to acquire the majority of Tattershall Castle Group (TCG), in a deal believed to be valued at c£100m.
The acquisition consists of 53 pubs out of the 62 operated by TCG including the famous Tattershall Castle flagship floating bar which is moored on the River Thames on London’s Victoria Embankment. The deal takes Stonegate’s estate to 665 sites.
The combined sale of a number of pub packages let to Stonegate topped the £100m earlier this year, after the a seven-strong portfolio of freehold pubs let to the managed operator was 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 followed OLIM’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: “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.”