LEGAL & General Property (LGP) has expanded its presence in the leisure sector after snapping up 27 Marston’s pubs for around £70m.
The property fund manager said yesterday it has completed the sale and leaseback purchase of the pub and restaurant chain’s portfolio.
Over half of the sites are located in the south east and south west of England, with the other half scattered across the rest of the UK, Wales and Scotland.
“The portfolio acquisition not only offers good diversification, both by sector and geography, but also a secure, long-term income stream which is linked to RPI and therefore provides a good hedge against inflation,” Adam Kerr, head of long income transactions at LGP, said.
The pubs are let to Marston’s on long, RPI-linked, leases and have been purpose built for the pub and restaurant chain within the last seven years, he added.
Savills advised Legal & General Property and Darren Moorhouse of DCLM Commercial Property acted for Marston’s.
LGP is the UK’s third largest institutional property fund manager in the UK with around £10.6bn under management as at 31 March 2013.