CBRE to Advise on UK Public House Income Strip Portfolio Sale
Global real estate advisor, CBRE, has been appointed by British Steel Pension Fund to sell a portfolio of seven freehold and long leasehold public house and lodge properties strategically located across the UK.
The assets are situated in Bilston, Southport, Godstone, Ebbsfleet, Scunthorpe and Skelton. All of the assets are operated by one of the UK’s largest and leading pub operators, Marston’s, with guarantees from the Marston’s topco. The leases expire in 2058 and have RPI annual kickers.
Additionally, the tenant benefits from a £1 buyback option at lease expiry. The guide price is £22.1m, reflecting an attractive 5.75% NIY.
We are delighted to have been appointed by British Steel Pension Fund to market this excellent income strip portfolio. Project Mars offers an excellent opportunity to acquire premium assets with strong property fundamentals whilst providing an attractive return on investment, with more than 35 years term certain and annually increasing, indexed rents.