The freehold of the property housing PizzaExpress in Greek Street, Soho, has been acquired by a private UK-based investor for £4.7m (3.5% net).
Jack Silvani, director at Coffer Corporate Leisure, which acted on behalf of the buyer, said: “The asset was acquired through Allsop after it failed to sell at its commercial auction. Opportunities to invest in the heart of London’s West End are few and far between, particularly in the leisure sector, which has seen sustained and consistent growth. The property is nestled between the soon-to-open east/west and proposed north/south Crossrail stations, which are expected to drive footfall through Soho’s Wardour Street, Dean Street, Frith Street and Greek Street.
“PizzaExpress has only four years left on its occupational lease. However, confidence in the central London restaurant market is so robust, unexpired lease length is often considered academic. In fact, in many cases landlords are keen for the incumbent tenant not to renew their lease so they can take advantage of the strong occupational market.
“This is the ninth property we have advised on in Soho during the past 12 months, with two more currently in legals. The market is exceptionally buoyant, with yields typically ranging between 2.75% and 3.5%.”