Palmer Capital has recently completed the purchase of a portfolio of four high quality gastro pubs located in the affluent English market towns of Hitchin, Taunton, Royal Tunbridge Wells and also the city of Sheffield. The properties are situated within prime leisure pitches and trade as either Pitcher & Piano and Lost & Found.
Each asset is leased on a new 35 year FRI term, by way of a sale-and-leaseback with Marstons PLC and is subject to five yearly RPI linked reviews collared and capped at 1% and 4% per annum respectively. Marstons Plc, is listed on the London Stock Exchange and as at July 2019 had a market capitalisation of c.£750m.
The properties were acquired on behalf of the Palmer Capital Income Fund (“PCIF”) for £11.8m, reflecting a net initial yield of 4.5%.
This marks a successful start to the year, which has seen Palmer Capital invest more than £125m in the first 6 months of 2019 on behalf of its institutional funds and separate account mandates, with c. £300m ready to deploy into similar style assets in the next 6 months.
Christopher Dee and Avison Young acted on behalf the Palmer Capital Income Fund.
Rupert Sheldon, Head of Core REIM at Palmer Capital commented:
“This acquisition is a perfect match for the fund, enhancing the “long, strong & progressive” income themes whilst offering a meaningful discount relative to comparable investments within the more fashionable sectors of industrial or city centre offices. “