Long-Income Freehold Pub Investment

The property comprises a prominent Victorian public house extending circa 5,800 sqft GIA, including a spacious six-bedroom apartment across the upper floors, together with front and rear beer gardens and garaging.

At the point of sale, the asset was let in its entirety to IE Group Ltd (a wholly owned subsidiary of Stonegate Pub Company Ltd) on a new 25-year FRI lease with no break options, incorporating 5-yearly CPI-linked rent reviews (with a 1% collar and 4% cap, annually compounded). The lease is further strengthened by a Stonegate guarantee via an Authorised Guarantee Agreement (AGA).

In addition to its strong covenant and secure long-income profile, the property offers significant long-term asset management potential, underpinned by a low passing rent, substantial existing residential accommodation, and apparent future development opportunity.

The property was being sold by auction, with Elem Real Estate appointed as joint auctioneer. Following our extensive marketing campaign, generating significant investor engagement, and detailed negotiations with multiple parties, contracts exchanged on an unconditional basis prior to the auction.

The agreed price reflects a highly competitive 6.1% NIY, representing an excellent result for our client, a long-established private property company.