Max Property Group (LON:MAX) has bought 29 London pubs for £42.5 million, in a sale and leaseback deal with Enterprise Inns (LON:ETI).
All the pubs are located in high value residential areas – including Marylebone, Notting Hill and Chelsea – and they take the value of the firm’s pub and nightclub portfolio past the £300 million mark.
The pubs, which will be held on full repairing and insuring leases, will give Max Property an initial rent roll of £2.975 million per annum.
"Consistent with our primary focus on entry price, this sale and leaseback offers attractive prospective returns underpinned by both the long leases with guaranteed uplifts and the vacant possession value of these properties located throughout some of London's most valuable boroughs," said Mike Brown, an external asset manager for Max Property.
The group’s portfolio is managed by property tycoon Nick Leslau and former Helical Bar executive Mike Brown, via Prestbury Investments LLC.