Castlebrooke has paid £8m for the long leasehold of Proud Cabaret’s home at 8 Victoria Embankment, WC2.
The inauspicious entrance under Waterloo Bridge opens up into a 20,000 sq ft cabaret, circus and burlesque venue, which was once the entrance to a riverside tram shed.
The venue, moments away from Covent Garden Piazza, also boasts a late licence and 10m ceiling heights – perfect for high wire acts and big hair.
The peppercorn long leasehold from Westminster City Council has 136 years unexpired and is let to Proud Embankment until 2038 with no breaks, giving 17 years to expiry. The deal represents a net initial yield of 9.83%.
Castlebrooke is led by former Carisbrooke founder Neil Young and has a brace of former Capco staff as directors, Liam Burns and Simon Gibbs.
Gibbs said: “8 Victoria Embankment is a great asset with all the fundamentals of the modern-day leisure venue – high ceilings, late night licence and a highly accessible location – combined with an attractive risk-adjusted entry basis.
“We have strong conviction that, as the various vaccine programmes roll out globally, London’s office occupation and international travel volumes will swing back to historical levels, allowing the wider West End leisure sector to thrive again. The West End is a globally renowned leisure destination, in which we have deep experience, and we are actively looking to make further investments.”
Cushman & Wakefield acted for Castlebrooke.
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