Wolverhampton bar sold in £3.6m deal
A WOLVERHAMPTON bar has been sold in a deal worth £3.6m.
Coffer Corporate Leisure has completed the investment sale of Yates’s, Queen Square, on behalf of C2 Capital.
The bar has been sold to Cannon Street Capital and the deal represents a net initial yield of 6.9%.
The four-storey building is let in its entirety on an unexpired term of 24.5 years to Hops Pub Company, guaranteed by Stonegate Pub Company. It has a passing rent of £265,000 per annum with five yearly rent reviews.
Stonegate Pub Company is the largest privately owned-managed pub company in the UK with a variety of licensed brands including Yates’s and Slug & Lettuce.
Lawrence Telford, director, Coffer Corporate Leisure, said: “In the last six months we have experienced investors look increasingly outside of London to the regions to find value.
“This transaction demonstrates the strong demand for high quality regional assets, particularly with index-linked reviews providing explicit growth. Underpinned by strong underlying trading performance and inherent value, the market for assets of this type is the most buoyant we have seen since the 2008 downturn.”
Coffer Corporate acted for the vendor C2 Capital. The purchaser, Cannon Street Capital, was represented by Smith Price.
