City Pub Co Acquire Soho Freehold Investment

The City Pub Group, the owner and operator of 52 pubs across southern England and Wales, has completed the acquisition of a premium freehold investment which is currently operated as Simmons Bateman Street. The pub is in the heart of Soho and currently generates approximately circa £202,000 per annum in rent. The next rent review is in October 2023, and the rent is subject to an RPI increase subject to a cap and collar. The lease has 16 years remaining, and the group has acquired the freehold for a cash consideration of circa £3.875m from Consolidated St. Giles LLP.

James Grimes of AG&G, who brokered the deal explained that the pub property investment market has softened in the eyes of investors who seek greater returns for their capital. This has created a window of opportunity for wealthy operators looking for quality reversionary opportunities. The deal represents a net initial yield of 4.9%.