Description
The Prince of Wales is arranged over ground, basement and three upper floors with stone elevations beneath a flat roof.

GROUND FLOOR
The ground floor comprises an open plan trading areas with 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.

Tenure & 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 Spirit Intermediate Holdings Limited (Company Number 04914762) expiring on 23 June 2034 at a current rent of £323,672 per annum subject to 2.5% annual fixed increases on 25 December 2022 to £331,764 per annum and a further increase to £340,058 per annum on 25 December 2023. There will then be a further upwards only open market review on 25 December 2024 and on 25 December 2029.

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) and guaranteed by Spirit Intermediate Holdings Limited (Company Number 04914762), which form 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 2nd January 2022, the company generated revenue of £1.341 billion and adjusted EBITDA of £156 million. Prior to the covid-19 pandemic in the financial year to 28 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.

Further details can be found within our sales particulars.

The Market
The leisure and hospitality sectors have seen revenues recover strongly since Covid restrictions were fully lifted in July 2021 which has increased investor demand for public house investments. The improving operator performance in London is best illustrated by the latest trading updates from London based operators Young’s and Fuller’s.

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 investor and occupier demand. Investor demand for London assets remains incredibly strong particularly for buildings which are let to strong covenants on long leases. Occupier demand for premises in prime London locations continues to push rental growth in the capital.

Further information can be found within our sales particulars.

Further Information
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 £9,750,000 (3.19% NIY) assuming usual purchaser’s costs.

A sale at this level would reflect a reversionary yield in December this year of 3.27% and a capital value of £1,202 psf.

The business will continue to trade unaffected from the premises during the marketing of the property and post completion of the sale.