Savills has been appointed to market two freehold public house investments in Hoddesdon, Hertfordshire and Lichfield, Staffordshire, which are let to leading operators Greene King and the Stonegate Pub Company. The pubs are available individually or can be purchased as a portfolio.
The Rye House in Hoddesdon (pictured) is currently let to Spirit Pub Company, which is wholly owned by Greene King, with a lease expiring in 2044. The pub benefits from a waterside location with an attractive outside space fronting the River Lee Navigation.
The property is held on an attractive lease at a current rent of £126,410 per annum with fixed annual rental increases of 2.5% per annum and is available at a guide price of £2.5 million reflecting a net initial yield of 4.75%.
The Walkabout in Lichfield occupies a prime city centre location and provides attractive trading accommodation over ground and first floor levels. The property is held on a lease expiring in 2039 at a current rent of £113,140 per annum and is available at a guide price of £1.9 million which reflects a net initial yield of 5.46%.
The current tenant Stonegate Pub Company are one of the UK’s leading pub operators and owners of brands including Slug & Lettuce, Yates, Pop World and Be at One. The lease benefits from five yearly upwards only rent reviews which are in line with 2.5% per annum compounded.
Stuart Stares, associate director in the licensed leisure team at Savills, commented, “Both the Rye House and Walkabout are let to extremely strong covenants and benefit from long leases with fixed rental increases. We therefore expect to generate significant interest from a range of different investors.”