Enterprise Inns has sold the freeholds of nine out of ten central London pubs at auction, raising around £12m.
Ten pubs were auctioned by Allsop Commercial today, eight of which sold in the room and one after, realising total proceeds of £12.15m, achieving a multiple of 15.2 times rent, at an average yield of 6.6%.
The tenanted operator followed the format of its auction sales to date — the freeholds will be subject to a 35 year lease, with a break clause at 25 years.
Those that sold included:
• Osteria Del Ponte, Kilburn, annual rent £70,000, guide price £900-£950,000, yield 6.67%, sold for £1.05m;
• The Grand Union, Islington, annual rent £75,000, guide price £1-£1.1m, yield 7.14%, sold for £1.05m;
• The Junction Tavern, Kentish Town, annual rent £75,000, guide price £975,000-£1.08m, yield 7.32%, sold for £1.03m;
• Dartmouth Castle, Hammersmith, annual rent £70,000, guide price £950,000-£1.05m, yield 6.83%, sold for £1.03m;
• Prince of Teck, Earl's Court, annual rent £160,000, guide price £2.25-£2.35m, yield 6.84%, sold for £2.34m;
• The Builders Arms, Chelsea, annual rent £150,000, guide price £2.3M-£2.5m, yield 5.17%, sold for £2.9m;
• The Hob, Forest Hill, annual rent £70,000, guide price £875,000 - £975,000, yield 7.49%, result £935,000;
• The Constitution, Marylebone, annual rent £70,000, guide price £1-£1.1m, yield 6.83%, result £1.03m;
The Prince of Wales in Clapham sold after the auction for an undisclosed sum off a guide price of £750,000-£850,000. The annual rent is £60,000.
The Stage Door, Waterloo, did not sell during the auction and is still available for £1.03m.
A spokeswoman for Enterprise said: "The result of the auction demonstrates the continued attractiveness to investors of the Enterprise covenant, underpinned by good quality property assets.
"In the current financial year we have now sold 63 pubs on a sale and leaseback basis realising proceeds of £103.3m at an average yield of 6.4%.
"Enterprise retains an economic interest in these pubs through existing occupational lease arrangements, which remain unaffected by these sales.
"Sale proceeds will be used to repay debt and we plan to include further pubs in auction on an ongoing basis."