Four Peach Pub Company freehold investments, subject to new 25-year index linked leases to Peach, have been released to the market for sale.
The four high quality gastro pubs are; Richard Onslow in Cranleigh; One Elm in Stratford Upon Avon (pictured); Rose & Crown in Warwick, and the Swan in Salford.
The total portfolio rent of £555k per year, equates to 10.7% of 2018 turnover and 44% of 2018 EBITDA, thereby providing significant operation headroom following completion. The assets also offer strong underlying vacant possession value.
Offers for the portfolio are invited in excess of £9.4m, which would equate to a net initial yield of 5.5%, after purchaser costs of 7.26%.
Hamish Stoddart, Director, Peach Pub Company, said, “Peach aim to be the best gastropub company on the planet. We are operators through and through. This move allows us to be debt free, to look to invest in our pubs and to carry on looking for opportunities to do a few new ones.“
Graeme Bunn, Managing Director of Fleurets who is handling the sale, commented, “The leases provide 5 yearly index linked rent reviews, to CPI with an annual collar and cap of 1% and 3%, full repairing tenant covenants, and without tenant break.
“I anticipate significant purchaser appetite for this exceptional portfolio of pub investments. Peach are proven, award winning operators of high quality food-focussed pub restaurants. The assets are well invested and offered on long indexed linked leases at sensible rents.”
