Prince of Wales, 150-151 Drury Lane, London, WC2B 5TD
- SIZE AVAILABLE
8,112 sq ft
754 sq m
- SECTOR
Pub for sale
Key features
- Freehold public house originally dating from c1850
- Prime location in the centre of London’s theatreland
- Close to the Royal Opera House and the London Transport Museum
- Substantial property arranged over five levels extending to approximately 8,112 sq ft
- Entire property let to Spirit Pub Company (Managed) Limited with a guarantee from Punch Pubs & Co Limited
- We are instructed to seek offers in excess of £8,000,000 which reflects a Net Initial Yield of 4.0% and a capital value of £986 psf
- Spirit Pub Company is wholly owned by Greene King who currently operate over 3,100 pubs across the UK including brands such as Metropolitan Pub Company, Chef & Brewer and Farmhouse Inns
- Punch Pubs currently own over 1,200 pubs through the UK
- Current rent of £340,058 per annum
- Open market reviews in December 2024 and 2029
Description
The Prince of Wales is arranged over ground, basement and three upper floors with stone elevations beneath a flat roof.
Location
Located in the heart of London’s West End, Covent Garden is renowned as being at the centre of the capital’s tourism and entertainment scene, attracting in excess of 44 million visitors per year. The district is renowned for its culture with over twenty thriving theatres including the Royal Opera House and Theatre Royal Drury Lane as well as numerous museums such as the London Transport Museum.
The Prince of Wales occupies a prominent corner position at the intersection between Drury Lane and Great Queen Street with occupiers nearby including the De Vere Grand Connaught Hotel, The Gillian Lynne Theatre, ITSU, Barrafina and the Freemason’s Hall. The property is a short distance from many restaurants, bars, fashion retailers and theatres that make up Covent Garden.
Availability_text
The accommodation comprises the following areas:
GROUND FLOOR
The ground floor comprises an open plan trading area with a central bar servery and seating on a variety of loose tables, chairs and bench seating for approximately 73 customers. Ancillary accommodation comprises a disabled WC and ladies & gentlemen’s WCs.
BASEMENT
The basement comprises a cellar and stores.
FIRST
The first floor is accessed from the ground floor trading area and comprises a function room with separate bar servery and seating on loose tables and chairs for 70 customers. Ancillary accommodation comprises ladies and gentlemen’s WCs.
SECOND
The second floor comprises ancillary accommodation including a trade kitchen with dumb waiter, staff room, office and staff training room.
THIRD
The third floor provides the managers accommodation which comprises kitchen, living room, bathroom, separate WC and four double bedrooms.
EXTERNAL
Externally there is seating fronting Great Queen Street and Drury Lane for 16 customers held by way of a pavement licence with the City of
Westminster which falls outside of our clients freehold title.
Situation
The property is situated on Drury Lane, a short distance from Covent Garden Underground Station, in the heart of theatreland making it ideally positioned to benefit from the high number of visitors generated by the diverse entertainment offering.
The Prince of Wales is surrounded by the popular tourist destinations of Oxford Street and The British Museum to the north, Covent Garden and The Strand to the south along with Leicester Square, Seven Dials and Piccadilly to the west, each with their own diverse entertainment and retail offering.
Tenure and Tenancy
The property is held freehold (Title Number 426466).
The entire property is let on a 30 year lease to Spirit Pub Company (Managed) Limited (Company Number 05269240) and guaranteed by Punch Pubs & Co Limited (Company Number 03982441) expiring on 23 June 2034 at a current rent of £340,058 per annum which is subject to an open market review on 25 December 2024 and 2029.
In addition to the statutory right to renew the lease under the Landlord and Tenant 1954 Act, the tenant also has a contractual right to renew the lease for a further 30 years on the same terms.
There is an Authorised Guarantee Agreement from Spirit Managed Inns Limited (Company No. 05266815) and a guarantee of the Authorised Guarantee Agreement from Spirit Intermediate Holdings Limited (Company No. 04914762).
Planning
Our initial enquiries of the local authority have revealed that the property is not listed although it is located within the Covent Garden Conservation Area.
Covenant
The property is let to Spirit Pub Company (Managed) Limited (Company Number 05269240) which forms part of the wider Greene King Limited company. The group currently operate around 3,100 pubs, restaurants and hotels across the UK including brands such as Metropolitan Pub Company,
Hungry Horse, Chef & Brewer and Farmhouse Inns.
In their latest group accounts which were for the 12 months to the 1st January 2023, the company generated revenue of £2.176 billion and adjusted EBITDA of £321 million. Prior to the covid-19 pandemic in the financial year to 28th April 2019, Greene King generated revenue of £2.216
billion and EBITDA of £482 million.
In 2019, CK Asset Holdings completed the acquisition of Greene King for £2.7 billion making this one of the largest ever portfolio acquisitions in the pub sector.
The lease is guaranteed by Punch Pubs & Co Limited (Company No. 03982441) which forms part of the wider Punch Pubs Group Limited company. The wider Punch Pubs & Co group currently owns in excess of 1,200 tenanted and managed pubs throughout the UK and reported turnover of £313.5 million and EBITDA of £79.1 million for the 52 weeks to 13th August 2023. In December 2021 the company was acquired by Fortress Investment Group
for approximately £1.0 billion.
The Market
The leisure and hospitality sectors have continued to perform strongly as they benefit from robust consumer demand. The resilient operator performance and typical long leases have continued to drive investor demand in the sector.
London continues to be recognised as one of the worlds safe havens for property investors. Its status as a leading global financial centre and as one of the most visited cities by tourists continues to drive strong investor and occupier demand seeking defensive assets which are let to strong covenants.
VAT
It is envisaged that the property will be sold as a TOGC so the transaction should therefore be exempt from VAT.
EPC
D-85
Proposal
We are instructed to seek offers in excess of £8,000,000 (4.0% NIY) assuming usual purchaser’s costs.
A sale at this level would reflect a low capital value of £986 psf.
The business will continue to trade unaffected from the premises during the marketing of the property and post completion of the sale.
Contact
All viewings must be made by prior appointment and under no circumstances should any direct approach be made to any of the occupational tenants staff.
For further information and all viewing requests please contact the sole selling agents Savills.
Brochures
Prince of Wales, 150-151 Drury Lane, London, WC2B 5TD
NEAREST STATIONS
Distances are straight line measurements from the centre of the postcode- Covent Garden Station0.2 miles
- Holborn Station0.2 miles
- Leicester Square Station0.4 miles
Notes
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