SA Brain & Co Seeks Buyer for 99-Pub Portfolio

Avison Young has been instructed to sell the investment interest. An investment portfolio of 99 pubs in Wales has been put on the market by SA Brain & Co.

Comprising 93 freehold and 6 long leasehold properties, the full portfolio is let to Marston’s Estates Ltd on 25-year leases.

Real estate advisor Avison Young has been instructed by Cardiff based SA Brain & Co to sell the investment interest, which comprises fully occupied properties in a range of locations in and around Cardiff, Newport and Swansea with clusters also in West, Mid and North Wales. The package is split between managed and tenanted outlets, with a mix of town and city centre, suburban and rural locations.

Peter Constantine, Managing Director of the Avison Young Leisure team says,

This is a rare opportunity to acquire a large, high-quality package of public houses located in strong trading positions across Wales. They benefit from a secure income stream let to an excellent covenant. We anticipate significant levels of demand as packages of this quality rarely come to the market.

The sale is being handled by Peter Constantine and John Coggins of the Avison Young Leisure Team and Chris Gore, Andrew Gibson and Alex John of the Avison Young Investment Team.

Offers are invited for the whole portfolio of freehold and leasehold interests.

For more information and brochure visit: thewalesportfolio.co.uk

Summary:

• Extremely rare opportunity to acquire a significant portfolio of public houses let on long occupational leases.
• The portfolio comprises 99 assets (93 freehold and 6 long leasehold).
• A geographically diverse portfolio occupying a range of locations varying from town and city centres to suburban and some rural settings. The properties are primarily concentrated around Cardiff, Newport and Swansea with clusters in West, Mid and North Wales.
• The entire portfolio is let to Marston’s Estates Limited on full repairing and insuring leases with Marston’s PLC as guarantor.
• The portfolio provides gross rent roll of £5,420,000 pa, subject to highly sought after annual CPI indexed rent increases, capped and collared at 1% and 3%, compounded every five years, and produces a net rent of £5,410,518 pa.
• The portfolio benefits from a weighted average unexpired lease term of 24.35 years to expiries and 14.35 years to tenant break options overall.

• Offers are invited in excess of £87.3 million for the portfolio subject to contract and exclusive of VAT.
• A purchase at this level reflects a highly attractive net initial yield of 5.75% (after the deduction of purchaser’s costs at 7.80%).