Telereal Trillium has completed its deal to buy eight Marston’s pubs from Aviva Investors for just over £21.2m.
The deal reflected a net initial yield of 5.87%. The pubs are all let at a total rent in excess of £1.3m per annum. The leases expire in 2055 and are subject to retail price index-linked rent reviews.
The pubs, which were constructed in 2014, are: Market Cross in Dunstable, Flying Shuttle in Haverhill, Sweet Chestnut in Dunfermline, Three Lights in Fleetwood, Waterwheel in Port Glasgow, White Willow in Bridgwater, Blaina Wharf in Newport and Featherbed in Shrewsbury.
Matthew Pearson, senior acquisitions manager, said: “This portfolio of high-quality and strategically located pubs offers secure, long-term income from one of the most recognisable operators in the market.
“We believe there are opportunities within the licensed sector and its readiness to cater for pent-up demand as we emerge from the pandemic.”
Paul Munday, head of investment acquisitions, said: “While we continue to look for attractive value-add opportunities, this transaction evidences our strong appetite to invest in assets occupied by good-quality tenants with secure income profiles.
“We continue to seek similar investment products as part of enhancing our income return across the portfolio.”
CBRE advised Aviva Investors on the sale of the portfolio; Fleurets acted for Telereal Trillium.
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