Lot 7
Commercial Investment let to Stonegate Pub Company Ltd until 2038 (no breaks) – Gross Yield 12.1%
6 week completion
Situation
Located at the junction with George Street in the pedestrianised town centre, opposite The Mall Luton which includes a Lidl Supermarket, diagonally opposite the Bedfordshire University Luton Campus and amongst a host of other multiple retailers including Farmfoods, Creams, Coral, NatWest, Barclays, Admiral Casino and others.
In addition, Luton Town Football Club is aiming to open its new stadium in 2026 which will be located in nearby Power Court approx. ⅓ mile distant.
Luton is a well known commercial centre approx. 30 miles to the south and the town benefits from easy access to the M1 (Junctions 10 & 11).
Property
Comprising a Substantial Ground Floor Pub with Ancillary Space on the mezzanine floor.
In addition, the property benefits from use of a Rear Loading Bay that can also be accessed from Park Street West.
Accommodation¹
Ground Floor Pub
Gross Frontage 105'9"
GIA incl. Pub Area, Kitchen, & WCs Approx. 5,166 sq ft
Mezzanine Ancillary
GIA Approx. 236 sq ft
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Total GIA Approx. 5,402 sq ft
¹Areas supplied by Vendor.
VAT is NOT applicable to this Lot
Tenure
Leasehold for a term of 999 years from completion at a peppercorn ground rent.
Tenancy
The property is let on an effectively full repairing and insuring lease to Stonegate Pub Company Limited (see Tenant Profile) for a term of 20 years from 7th December 2018 (see Note 1) at a current rent of £109,000 per annum exclusive.
Rent Reviews December 2023 (Outstanding - see Note 2) and 5 yearly to the greater of Market Rent or RPI with a collar and cap at 1% and 4% respectively.
Tenant Profile
Stonegate Group is now the largest pub company in the UK with over 4,500 sites which range from Leased & Tenanted to Managed and includes such branded bars including Slug & Lettuce, Yates, Walkabout and Be At One. Visit: www.stonegategroup.co.uk
Note 1: A reversionary lease was completed in December 2021 for a further 10 year term from 7th December 2028 to 6th December 2038.
Note 2: When activated, we understand the December 2023 rent review will increase the rent to a minimum of £113,360 p.a.
Note 3: The property has traded as a pub for over 25 years.
Note 4: The beer garden to the side of the building is not demised to Stonegate Pub Company Liminted and is not included with this sale.
Note 5: The Freehold of the property to include the vacant upper part is also being offered for sale in this auction - see Lot 8.