CBRE Global Investors has completed the acquisition of a portfolio of seven public houses and a restaurant in Central London on behalf of separate account clients for an undisclosed sum.
The portfolio covers approximately 37,463sq ft and is occupied by a number of established national operators, including Ei Group, Cirrus Inns and Greene King. The majority of the assets are held on leases of 15 years or more with open market rent reviews.
The properties are: The Builders Arms in Chelsea, Elgin Bar & Grill in Maida Vale, Red Lion in St James, Uxbridge Arms in Notting Hill, Casa Cruz in Holland Park, Admiral Codrington in Chelsea, Mall Tavern in Notting Hill and Prince of Wales in Covent Garden
Performance within the Central London public house market has been buoyant in recent years, resulting in robust demand for prime assets and healthy rental growth, CBRE GI said.
Oliver Scoular, Fund Manager, CBRE Global Investors, said: “This represents a rare opportunity to invest in a prime London public house portfolio, which is suitable for a number of our clients. The assets are expected to be long term holds to take advantage of the strength of demand for well-located London public houses and their historic inflation tracking rental characteristics, which we expect to continue in the future. The public houses trade very well and are supported by both strong vacant possession public house values and alternative use values.”
CBRE Global Investors was advised by AG&G and Fleurets. Savills advised the private vendor.
