Aviva puts UK pub portfolio up for sale

Global real estate advisor CBRE has been appointed by Aviva Investors to sell a portfolio of eight recently constructed, freehold public houses located across the UK.

All of the assets are operated by UK pub operators Marston’s, with guarantees from the Marston’s topco. The guide price is £21.6 mln (€25 mln), reflecting a net initial yield of 5.75%.

David Fraser, senior director and investment specialist in CBRE’s operational real estate team said: 'We are delighted to have been instructed by Aviva Investors to market this excellent income strip opportunity.

'The portfolio comprises high-quality real estate that benefits from good underlying fundamentals and a strong return profile, in a sector that we expect to flourish as we continue to come out of the pandemic.'

According to CBRE, the leases expire in 2055 and have RPI annual kickers. Additionally, the tenant benefits from a £1 buyback option at lease expiry.

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