The Restaurant Group is looking to sell and leaseback its office in Southwark, SE1, at 5-7 Marshalsea Road.
CBRE have been appointed to look for offers in excess of £25.7m, reflecting a net initial yield of 4.45% and capital rate of circa £1,100 per sq ft.
On completion of the sale, the property will be let in its entirety to the group for a term of 10 years, with rare annual fixed rental uplifts built into the lease guaranteeing rental performance.
TRG, which has over 600 restaurants and pubs with brands including Wagamama, Frankie and Benny’s and Chiquito in the UK, is also to undertake a £2.7m refurbishment of the property to create more than 23,000 sq ft of creative space, including two large roof terraces on the first and fifth floors.
David Fraser, senior director, central London investment at CBRE said: “The combination of its dynamic location, guaranteed long-term rental income plus the £2.7m planned refurbishment to be completed by the current owners will make it an attractive proposition to a wide range of investors.”
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