Enterprise Inns has announced it has raised £32.46m from the sale and leaseback of a portfolio of 26 freehold pubs to Hermes Property Unit Trust (HPUT).
The pubs will be leased back to Enterprise on new 35-year leases.
Enterprise said that the sale proceeds from the deal are above the total book value as at 30 September 2010 of £25.05m
All of the properties will be held on full repairing and insuring leases with five-yearly upwards only increases, all increases in line with RPI subject to a minimum uplift of 2% per annum and a maximum uplift of 4% per annum. The initial rent roll is £2.16m per annum.
This sale and leaseback is in line with Enterprise’s stated objective to seek efficient sources of capital, and the disposal proceeds will be used for debt repayment.
After this latest deal, Enterprise will have achieved around £210m from its sale and leaseback programme.
Chris Mathew, fund director of HPUT, said "This sale and leaseback transaction meets HPUT's investment focus of securing stock with strong performance potential. The investment case is very powerful: the property fundamentals of each asset are excellent and the investments are let on long leases to a good tenant (Enterprise Inns) with fixed uplifts."
HPUT was advised by CBGA and Tudor Toone with specialist occupational advice from property advisor AG&G.
