Maidstone Borough Council has bought the long leasehold interest in Maidstone’s Lockmeadow Entertainment Centre for around £19m.
The council, which already owned the freehold, bought the leasehold for the 141,329 sq ft venue from Kames Capital.
The deal reflected a net initial yield of around 7.65%. Its tenant line-up is anchored by an Odeon Cinema and includes Hollywood Bowl, David Lloyd, Gravity Fitness, Greene King, Frankie & Benny’s and Gourmet Burger Kitchen.
Odeon has extended its lease to 15 years term certain alongside the council’s purchase.
By merging its freehold and leasehold interests, the council will be able to remove the existing head rent payable under the long lease.
The council aims to introduce improvements to the centre.
ESH advised the council; Savills advised the vendor.
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