27 September 2021
Telereal Trillium has bought eight recently constructed, freehold public houses from Aviva Investors for £21.225m, reflecting a net initial yield of 5.87%.
Strategically located across the UK, the pubs are all let to FTSE 250-listed Marston’s Plc, one of the UK’s largest pub companies, for a total rent in excess of £1.3m per annum. The leases expire in 2055 and are subject to Retail Price Index-linked rent reviews.
The pubs, which were constructed in 2014, occupy sites in popular, principal and market towns, as well as coastal locations in England, Scotland and Wales. They are: Market Cross in Dunstable, Flying Shuttle in Haverhill, Sweet Chestnut in Dunfermline, Three Lights in Fleetwood, Waterwheel in Port Glasgow, White Willow in Bridgwater, Blaina Wharf in Newport and Featherbed in Shrewsbury.
Commenting on the acquisition, Matthew Pearson, Senior Acquisitions Manager said:
‘This portfolio of high quality and strategically located pubs offers secure, long-term income from one of the most recognisable operators in the market. We believe there are opportunities within the licenced sector and its readiness to cater for pent-up demand as we emerge from the pandemic’.
Paul Munday, Head of Investment Acquisitions added:
“Whilst we continue to look for attractive value add opportunities, this transaction evidences our strong appetite to invest in assets occupied by good quality tenants with secure income profiles. We continue to seek similar investment products as part of enhancing our income return across the portfolio.”
CBRE advised Aviva Investors on the sale of the portfolio and Telereal Trillium was advised by Fleurets.