The leisure investment sector is likely to see a slow-down in transactions from 2015, due to a shortage of prime properties coming to the market, according to leading advisory firm the Coffer Group.

The company said that with fewer quality assets changing hands, prices will remain at current levels.

Managing director Mark Sheehan said: “Yield compression will come to an end, and investors will need to rely on rental growth to generate returns and profit. Some softening in the leisure commercial property market is quite possible.”

Sheehan also forecast that there would be increased liquidity in the market from private equity companies, who are looking to buy smaller-sized roll-out businesses.

He said: “We will see a continuation of small groups looking to build their portfolios with a view to exiting in the next few years to private equity companies for a substantial sale price.

“We will also see more sale and leasebacks in the pub sector as operators capitalise on buoyant property prices and enabling them to reinvest back into growing their business.”

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