The investment sale of Yates’s, 34 Queen Square, Wolverhampton, saw the property sell for £3.625m to Cannon Street Capital, reflecting a net initial yield of 6.9%
The substantial freehold building is arranged over ground, basement and four upper floors. The property is let in its entirety on an unexpired term of 24.5 years to Hops Pub Company, guaranteed by Stonegate Pub Company, off a passing rent of £265,000 per annum with five yearly rent reviews to RPI subject to a collar and cap of 1% and 4% respectively.
Coffer Corporate acted for the vendor C2 Capital.
Lawrence Telford, director, Coffer Corporate Leisure, said: “In the last six months we have experienced investors look increasingly outside of London to the regions to find value. This transaction demonstrates the strong demand for high quality regional assets, particularly with index-linked reviews providing explicit growth. Underpinned by strong underlying trading performance and inherent value, the market for assets of this type is the most buoyant we have seen since the 2008 downturn.”
Cannon Street Capital was represented by Smith Price.
