TDR Capital, the private equity firm behind the takeovers of Pizza Express and Ask Central, has crystallised value in its restaurant portfolio through sale-and-leasebacks worth £30m.
The deals will help to service £440m in total debt financing, backing TDR’s acquisition with Capricorn Ventures of Pizza Express for £278m last July and Ask Central, which owns the Ask and Zizzi brands, in March for £213m.
TDR has sold 17 freehold and leasehold properties from the two companies in separate deals. It sold 12 Ask properties across the country to private London-based investor Tony Khalastchi for just under £20m, an initial yield of 5.75%.
The deal included Ask and Zizzi restaurants in Brighton, Exeter, Finchley, Hampton Court, Leicester and Nottingham. TDR has taken 25-year leases with fixed 2.5% pa increases.
Michael Elliott acted for Khalastchi; Davis Coffer Lyons’ new investment division and RSA acted for TDR.
The second deal involved five Pizza Express units outside London. They were sold to another private buyer for £8.5m, an initial yield of 5.6%.
RSA acted for TDR Capital.
TDR is charting an ambitious expansion plan for Pizza Express, Ask and Zizzi.
References: EGi News 12/07/04
