Slug & Lettuce144 Church Street, Preston, PR1 3AB

Description
The three storey mid terrace building is arranged over ground, basement, first and second floors with painted rendered elevations beneath a pitched roof.

Tenure
The property is held freehold (Title Number LA715338).

Tenancy
The entire property is let to Hops Pub Company Limited with Stonegate Pub Company Limited, Barley Pub Company Limited and Town & City Pub Group Limited as Guarantor at a current rent of £169,809 per annum, which is subject to five yearly annually compounded upwards only rent reviews in line with RPI subject to a collar of 1% and cap of 4%, with the lease expiring 7 July 2045. The next rent review is 5 February 2025 where the rent will increase to £199,441 per annum (assuming 3.0% RPI in the 12 month period prior to the review date).

Planning
The property is not listed or situated within a conservation area.

VAT
It is envisaged that the property will be sold as a TOGC so the transaction should therefore be exempt from VAT on the basis the purchasing entity is VAT registered.

EPC
C - 73

Terms
Offers in excess of £1,875,000 which reflects a Net Initial Yield of 10.0% NIY based upon the topped up rent of £199,441 per annum and standard purchasers costs. The February 2025 rent may be subject to change in an upwards or downwards direction subject to the RPI data published in February 2025. On the assumption that RPI in February 2025 is 3.0% the passing rent will be £199,441 per annum.

Covenant
Stonegate Pub Company Limited is the largest pub company in the UK currently owning and operating 4,432 pubs/bars with revenue of £1,719m in the 52 weeks to 24 September 2023.

Stonegate Group are backed by private equity firm TDR Capital and were established in 2010 through the acquisition of 333 pubs from Mitchells and Butlers for £373 million. In March 2020, Stonegate acquired Ei Group for £1.27bn to produce the UK’s largest pub company comprising 1,349 managed operations and 3,033 leased and tenanted pubs.

In July 2024 Stonegate Group completed their debt refinancing requirements which resulted in TDR Capital making a £250m shareholder contribution demonstrating their continued support for the business. This follows the refinancing agreement with Apollo in December 2023 for £638m in relation to c1,000 pubs within the Stonegate estate.

The company is renowned for its Yates and Slug & Lettuce brands however they operate a number of formats including Popworld, Walkabout, Be at One, Craft Union, Proper Pubs, Social Pub and Kitchen and Sports Bar & Grill.

Fixtures & Fittings
The fixtures and fittings are currently owned by the occupational tenant.

Viewings
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.

Money Laundering
Money Laundering Regulations require Savills to conduct checks upon all purchasers. Prospective purchasers will need to provide proof of identity and residence.