The freehold of a landmark Pitcher & Piano site in Newcastle has been sold for £7.6m.

The site, which was marketed for offers in excess of £6.6m, has been sold to Cordea Savills on a sale and leaseback to Marston’s, which operates the bar brand. CBRE acted for Marston’s.

The sale represents a net initial yield of 4.35%. It is let on a new 35-year lease to Marstons with an annual rental income of £350,000.

The property, which occupies a coveted position fronting the River Tyne, underwent a major refurbishment in March 2013.

Senior director of CBRE’s National Specialist Markets team, Andrew Watt, said; “We are delighted with how quickly a sale was agreed and completed for our client. This high profile investment represented a superb opportunity for the purchaser to enhance their portfolio with a signature property with strong, long-term rental returns in an established leisure location.

“The transaction is representative of the growing buoyancy we are witnessing within the leisure investment market and is encouraging news as the whole of the property sector shows increasing signs of recovery.”

James Whidborne, portfolio manager at Cordea Savills, said: “The Pitcher and Piano on Newcastle Quayside is an iconic bar with exceptional trading figures and a strong residual value underpinned by its instantly recognisable location. We are delighted to have secured the purchase for this relatively new mandate targeting long index linked property in core locations.

“Since July 2013, we have committed £110m of an £150m allocation, through a mixture of standing investments and pre-let development opportunities across all sectors. The Pitcher & Piano is the perfect example of an investment that fulfils the brief. The team did exceptionally well to complete the transaction is such a short timeframe.”