Lancs cinema changes hands in multi-million pound deal
THE Odean Multiplex Cinema in Preston has been sold by owner LondonMetric Property for £10.2m.
It has been acquired by Blackrock UK Long Lease Property Fund, reflecting a net initial yield of 5.75%.
The 10-screen 33,000sq ft cinema is let to Odeon Cinemas for the remaining term of 23 years.
The lease is subject to annual rental increases of between 1% and 5% linked to RPI.
The property formed part of a portfolio of 10 Odeon Multiplex Cinemas acquired by LondonMetric in November 2013 at an overall net initial yield of 7.2%.
LondonMetric to own seven Odeon cinemas and one Vue cinema with an average lease length of 22 years.
LondonMetric chief executive Andrew Jones said: “This sale attracted good institutional interest for a long-dated and inflation linked income let to a strong covenant, particularly as the cinema market has continued to strengthen on the back of an impressive film slate.”
BlackRock portfolio manager Geoffrey Shaw said: “This is the latest in a series of acquisitions we are making to obtain long-dated cash flows to match the liabilities of our clients.
“Similar to our acquisition of the Ferndown Portfolio of garden centres for £112.5m, this income stream is backed by strong operational real estate.”
Knight Frank advised LondonMetric and CBRE advised Blackrock.
