A portfolio of 17 freehold pubs let to Stonegate Pub Company has been sold by PFA Acquisitions to real estate investment company Aprirose in an off market transaction totalling £23.5m, which reflects a 6.65% net initial yield.

Seven of the pubs trade under the Slug & Lettuce and Yates’s brands with the remaining 10 consisting of unbranded pubs located throughout England and Scotland.

In June, a Stonegate-let portfolio of 15 pubs was acquired by OLIM Property Limited for £28.27m reflecting a 6.31% net initial yield. Coffer Corporate Leisure acted on both portfolio transactions.

The latest portfolio of 17 pubs, which have leases benefiting from indexed uplifts throughout their 25 year terms, are located in Putney, Croydon, Southend, Chesterfield, Camberley, Lancaster, Lincoln, Blackpool, Derby, Leicester, Glasgow, Chatham, Swindon, Blackpool, Newport, Eastleigh and Chorley.

Mark Sheehan, managing director of Coffer Corporate Leisure, which acted for vendor PFA Acquisitions, said, “High quality, town centre pubs with a substantial covenant are desirable assets. Our understanding of the key active investors in the market helped PFA Acquisitions to quickly identify the buyer and complete the transaction whilst maximizing return.

“Stonegate is a strong operator with excellent assets which trade well. Aprirose will benefit from an excellent covenant, long term growth and the acquisition of prominent pubs in their respective localities.

“Good leisure investment assets remain attractive to buyers seeking secure long-term income with visibility on underlying trading.  We expect to see further leisure investments assets changing hands in the near future.”

Stonegate is one of the largest managed pub companies in the UK with an estate of approximately 620 pubs including 270 freehold and long leasehold pubs.