A historic Covent Garden pub in London’s theatre district is on the market for offers in excess of £8,000,000.
The Prince of Wales, dating back to around 1850, is situated on Drury Lane and boasts of a prime location in the centre of London’s theatreland.
The freehold public house is close to the Royal Opera House and the London Transport Museum and is a short distance from Covent Garden Underground Station.
Punch Pubs & Co Limited guarantee the entire property, which is let to Spirit Pub Company (Managed) Limited for a 30-year lease expiring on June 23, 2034.
The current rent stands at £340,058 per annum, with open market reviews scheduled for December 2024 and 2029.
The lease holder also has a contractual right to renew the lease for another 30 years on the same terms.
The pub is spread over basement, ground, and three upper floors, extending to approximately 8,112 sq ft, and has a flat roof.
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The property is in a conservation area but is not listed, according to initial inquiries with the local authority.
The Prince of Wales is surrounded by popular tourist spots such as Oxford Street, The British Museum, Covent Garden, The Strand, Leicester Square, Seven Dials, and Piccadilly, each offering diverse entertainment and retail options.
Greene King Limited, which owns Spirit Pub Company, operates over 3,100 pubs, restaurants, and hotels across the UK.
In the 12 months leading up to January 1, 2023, the company reported revenue of £2.176 billion and an adjusted EBITDA of £321 million.
The lease is guaranteed by Punch Pubs & Co Limited, part of the wider Punch Pubs Group Limited company, which owns over 1,200 tenanted and managed pubs throughout the UK.
In the 52 weeks leading up to August 13, 2023, the group reported a turnover of £313.5 million and an EBITDA of £79.1 million.
The company was acquired by Fortress Investment Group in December 2021 for around £1 billion.
The leisure and hospitality sectors have been performing strongly, benefiting from robust consumer demand.
The resilient operator performance and typical long leases have continued to drive investor demand in the sector.
London maintains its reputation as a safe haven for property investors, thanks to its status as a leading global financial centre and one of the most visited cities by tourists.
This continues to drive strong investor and occupier demand for defensive assets let to strong covenants.
The sale of the Prince of Wales is expected to be exempt from VAT, as it will be sold as a Transfer of a Going Concern (TOGC).
The business will continue to trade unaffected from the premises during the marketing of the property and post-completion of the sale.
Covent Garden, where the Prince of Wales is located, attracts more than 44 million visitors annually.
The district is renowned for its culture, boasting over twenty thriving theatres, including the Royal Opera House and Theatre Royal Drury Lane.
The Prince of Wales occupies a prominent corner position at the intersection between Drury Lane and Great Queen Street.
Nearby occupiers include the De Vere Grand Connaught Hotel, The Gillian Lynne Theatre, ITSU, Barrafina, and the Freemason’s Hall.
The pub is within a short distance of many of the restaurants, bars, fashion retailers, and theatres that make up Covent Garden.
The property is being marketed by Savills and all viewings must be made by prior appointment, with no direct approach to the staff of the occupational tenant.
The Prince of Wales offers a unique investment opportunity in the thriving Covent Garden area, with its historical charm, central location, and secure lease.
The sale reflects the continued strong performance and demand in the leisure and hospitality sectors, particularly in London.
As a freehold public house, the Prince of Wales is a rare find in London’s bustling theatre district, making it an attractive investment for both local and international buyers.
The sale of the property is being handled by Savills.
The Prince of Wales represents a unique chance to own a piece of London’s vibrant theatreland, with its rich history and central location making it a valuable addition to any property portfolio.
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