Max Property Group, the company led by Nick Leslau and Mike Brown, which acquired 29 Enterprise Inns in a £42.6m sale-and-leaseback deal in January, has reported a 3.8% uplift in the value of the portfolio at the end of March. The 29 pubs, which were situated in high value residential area in and around London, were let on new 35-year leases to Enterprise at market rents totalling £3m with minimum 3% per annum and maximum 4% per annum annual RPI-linked uplifts. The net initial yield on the portfolio was 6.7% and the capital value at cost was £300 per square foot. The company said that the independently assessed vacant possession value of the portfolio was approximately the same as the purchase price, and many of the properties “are considered by the management team to have a higher alternative value for residential use in the event that they fell vacant and planning consent were secured”. Since the acquisition, Max Property has sold the Rose & Crown pub in Chelsea for £2.1m at a net initial yield of 4.5%, which equates to a £650 per square foot capital value, realising a profit of £600,000, 41% above the gross purchase price. The company also reported a 4.7% uplift in the portfolio valuation of the 14 nightclubs it acquired for £9.4m last October. The nightclubs were acquired in a deal struck with a lender seeking an exit for a larger portfolio. At the time of acquisition, three of the clubs were vacant and the net initial yield on acquisition was 15%, expected to rise to 16% on letting of the vacant space and 19% after the guaranteed rental uplifts in year five. From the portfolio, 11 of the units were let to Atmosphere Bars & Clubs for a 25-year term certain, while 13 sites were held freehold and one leasehold. The units held by Atmosphere are let on 30-year leases from January 2010 with a tenant break option at year 25. The aggregate net rent of £1.4mrises by 15% to £1.6m in 2015 with five-yearly upwards only open market reviews thereafter. Max Property said that Atmosphere is a debt free company backed by Sun Capital Partners and was formed to acquire the best of the units from the former 3D Entertainment Group. Since acquisition one freehold property in Colchester has been sold for £800,000 realising a profit of £400,000. Of the three properties vacant at acquisition, the company said that one has been let on a new 20-year lease, one has been sold since the year end for proceeds of approximately twice its cost and one, with an ERV of £60,000, remains vacant. The group said that the yield expectation after the first review of the Atmosphere units, the letting of the vacant unit and the signing of the sale in hand was now expected to be in excess of 20%.