Legal & General Property (LGP) has completed two sale and leaseback purchases with pub giant Marston’s, totalling £34.6m.
In the larger of the two transactions, LGP completed a sale and leaseback purchase of a portfolio of seven Marston's pubs for £25.32m, reflecting a net initial yield of 4.15%. The properties are all let to Marston’s on 40 year leases and have been purpose built for the pub/restaurant chain within the last three years.
Situated across the UK, the pubs are located in the Midlands and North East, with one in the South West. The assets are all community or destination pubs, situated next to generators of high footfall, and are family-friendly and food-orientated in their offer, providing traditional fare at affordable prices in enduring locations.
In a separate acquisition, LGP has completed the sale and leaseback purchase of Marston’s Headquarters, Marston’s House in Wolverhampton, for a total of £9.3m, reflecting a net initial yield of 4.26%. The lease to Marston’s, who have occupied the building since the 1970’s, is for a term of 40 years.
As part of the deal a substantial refurbishment programme of the property was undertaken to bring it up to grade A standard and provide an excellent HQ facility for Marston’s.
Following completion of the works the property has a total gross internal area of 47,106 sq ft and benefits from 52 car parking spaces.