The Castle Grounds, 7 Little Park Street, Coventry CV1 2UR
exchanged
Public house investment located in Coventry city centre close to the main retail area, opposite the Council House & Coventry University’s main campus
Substantial freehold property extending over basement, ground and two upper floors. Accommodation extends in total to 5,850 sq ft plus residential accommodation.
The property is let to Stonegate Pub Company Ltd on a lease that expires on 13 May 2044, providing an unexpired term of over 20 years.
The current passing rent is £78,135 per annum. The rent is increased annually and linked to RPI. There is a collar of 2% and a cap of 4% each year.
We are instructed to seek offers in excess of £850,000 (Eight Hundred & Fifty Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this price would reflect a net initial yield of 8.7%, assuming costs of purchase of 5.61%.
Assuming RPI growth will exceed the maximum increase of 4% for the current year the reversion in May 2024 is expected to be 9.1%.
Assuming similar growth over the next five years the reversion by May 2029 should be 11.0%.
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