Cordea Savills has purchased the Vue Cinema in London’s Leicester Square for £23.46 million (approx. €27.13 million) on behalf of a UK pension fund client. The asset is the first to be purchased as part of a new mandate of £100 million (approx. €115.6 million) to be invested in properties with RPI or fixed rental increases.
The nine-screen cinema, seating 2,500 people, lies in the heart of London’s tourist and leisure industry, the West End. It was rebuilt behind the Art Deco façade in 1993 and is the only true multiplex on Leicester Square.
The property comprises a 22 year leasehold interest from freeholders Gascoyne Estates and is being acquired at an initial yield of over 8.25% with fixed annual rental increases of 2%.
Lucy Winterburn, Director of Investment, commented, “The robust fundamentals of the location and covenant plus the attractive leasing structure should make this asset a strong performer relative to our client’s performance objective.”
Cordea Savills was advised by Cortex Partners, with Fineman Ross acting on behalf of the vendor, Helix Property Advisors.
Source: Cordea Savills