A property investment firm led by former Capital & Counties executives has acquired London nightclub Proud Embankment for £8m in a show of confidence in the return to dancefloors.
Castlebrooke Investments has taken a 17-year lease on 8 Victoria Embankment, the entertainment venue that plays host to Proud Cabaret.
The former riverside tram shed entrance boasts 20,000 square feet of nightclub space, 10-metre high ceilings and a late licence.
The long leasehold from Westminster City Council has 136 years unexpired and is let to Proud Embankment until 2038.
Castebrooke is acquiring the leasehold for £8m, representing a net initial yield of 9.83 per cent.
Simon Gibbs, director of Castlebrooke Investments, said: “8 Victoria Embankment is a great asset with all the fundamentals of the modern-day leisure venue – high ceilings, late night licence and a highly accessible location – combined with an attractive risk-adjusted entry basis.”
The investment marks a show of confidence in a return to clubbing following the easing of Covid restrictions and the continued rollout of vaccines.
Gibbs added: “We have strong conviction that, as the various vaccine programmes roll out globally, London’s office occupation and international travel volumes will swing back to historical levels, allowing the wider West End leisure sector to thrive again.
“The West End is a globally renowned leisure destination, in which we have deep experience, and we are actively looking to make further investments.”
Castlebrooke, a private UK property investment firm, has tapped several former Capco executives to spearhead deals in central London. The company was represented by Cushman & Wakefield.