Investment

Hermes
Our experience and market insight mean we can handle complex multiple deals confidently and with discretion. In 2012, for example, Hermes Property Trust asked us to act for them when they acquired a portfolio of 17 freehold pubs from Enterprise Inns, in an off-market deal worth £23.9 million.

  • The deal included two London pubs, with most of the others in affluent locations in the South of England – the most remote was in Cornwall
  • Each property was leased back to Enterprise Inns for 35 years, generating an initial rent roll of £1.635 million per annum and making this one of the largest investment deals in the sector in recent years
  • It followed a similar deal in 2011, where we provided specialist advice to Hermes in the acquisition of 26 central and inner London pubs from Enterprise Inns for £32.46 million – these properties were also leased back, with an initial annual rental income of £2.16 million

One-off investment sales
We also regularly broker one-off deals for investors who want a slice of the burgeoning quality licensed leisure sector. Here are some recent examples.

  • Finborough, SW10 – the building housing Chelsea’s famous Finborough Theatre offers a rental income of nearly £43,000 and sold off an asking price of £1.05 million
  • Marquis of Granby, W1 – the freehold of this Shaftesbury Avenue landmark sold for around £3.5 million and it provides a sub-five per cent yield for its new owner
  • Cote Restaurant, Parsons Green, SW6 – this building, housing one of the smart restaurants in Richard Caring’s fast-growing chain, sold off an asking price of £2 million -- the rental income of £123,000 per annum represents a yield of around six per cent
  • Seven Stars, WC2 – this 17th century landmark pub is featured in guidebooks and generates £52,500 in rent per annum, reflecting a yield of just over four per cent
  • Market Hotel, Reigate – we acted for Fullers in unlocking both the freehold and leasehold interests of this  landmark property in the Surrey town centre simultaneously, to create a vacant freehold building for the London brewer to refurbish and operate directly under management
  • Crown, Chalfont St Giles – we sold the freehold of this well-known gastro-pub in an affluent London commuter town, subject to tied lease to a private investor (our vendor client, Punch no longer want to retain the building because of falling beer volumes in what had become a food-led business)