Matthew Oakeshott’s OLIM Property has completed the off-market purchase of 15 freehold pubs let to Stonegate, one of the largest managed pub companies in the UK, for £28.3m – a 6.3% yield.
The portfolio, guaranteed by the full Stonegate covenant, has been sold by PFA Acquisitions to OLIM Property on behalf of pension fund and investment trust clients.
The portfolio contains six Slug & Lettuce’s, four Yates’s and five unbranded pubs producing a total rent of £1.8m pa. The leases have indexed uplifts throughout their 25-year term. The pubs are located in Islington, Romford, South Woodford, Sutton, Cheltenham, Poole, Lincoln, Newcastle-under-Lyme, Sale, Blackpool, Leeds (Lower Briggate), Leeds (Woodhouse Lane), York, Newcastle-upon-Tyne and Perth.
Stonegate has an estate of more than 620 pubs including more than 260 freehold and long-leasehold pubs.
Mark Sheehan, managing director of Coffer Corporate Leisure, which acted for PFA Acquisitions, said: “OLIM Property moved fast to acquire this package of high-quality town centre pubs. With its wealth of experience acquiring leisure properties, OLIM was attracted by both the substantial covenant and quality assets in major towns and cities. The firm completed the purchase ten working days after we first offered the assets to it.”
Oakeshott added: “This is our kind of deal. We were offered it direct with the full facts at a realistic price by a committed seller for an immediate decision. We said yes in a day, and got our skates on from London to Cheltenham and Poole to Perth with our team of advisers to get it done in 10.”
Kitchen La Frenais Morgan and Fleurets acted for the purchasers.
annabel.dixon@estatesgazette.com
