Legal & General Property has completed two sale and leaseback deals with Marston’s pubs for £34.6m in total.
The larger deal included the sale and leaseback of seven Marston’s pubs for £25.3m, a net initial yield of 4.2%.
The properties are all let to Marston’s on 40-year leases and have been purpose-built for the pub/restaurant chain within the past three years.
The pubs are located in the Midlands and North East, with one in the South West.
In a separate acquisition, L&G completed the sale and leaseback of Marston’s headquarters, Marston’s House in Wolverhampton, for £9.3m, a net initial yield of 4.3%.
The 47,106 sq ft property has recently been refurbished to grade A standard and has been occupied by Marston’s since the 1970s. It is currently let to Marston’s on a 40 year lease.
The properties were bought through L&G’s Limited Price Inflation Income Property Fund, bringing its investment portfolio to more than £800m.
Savills advised LGP on the pubs acquisition; Jackson Criss acted for LGP on the HQ acquisition; King Street Commercial represented Marston’s in both deals.
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