Four Peach Pub Company Limited freehold investments, subject to new 25 year index linked leases to Peach, have been released to the market for sale.
The four properties all trade as high quality gastro pubs; Richard Onslow, Cranleigh; One Elm, Stratford Upon Avon; Rose & Crown, Warwick and Swan, Salford.
Graeme Bunn, Managing Director of leisure property specialist Fleurets is handling the sale comments: “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.”
Bunn continues: “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.”
The total portfolio rent of £555,000 per annum, 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 £9,400,000, which would equate to a net initial yield of 5.5%, after purchaser costs of 7.26%.
Hamish Stoddart, Director, Peach Pub Company says: “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.“
For additional information or to view other public houses and bars for sale, click here.