11/03/2024 10:02:00
Occupying a prominent site on the corner of Gloucester Place and Gloucester Street within Brighton City Centre sits North Laine Brewhouse.
The property currently trades under The Laine Pub Company which operates a total of 56 pubs made up of a mixture of freeholds and leaseholds sites. These are mainly located in Brighton (33 pubs), London and Birmingham. The brewed beer is sold in over 800 pubs across the UK.
The company is a wholly owned indirect subsidiary of Punch Pubs & Co. Group Limited. The group had £54.1m of available liquidity as of 3rd December 2023, represented by £50m undrawn against the revolving credit facility and £4.1m of cash reserves.
Leisure property specialist Fleurets has brought the substantial and historic four storey character property to market and are instructed to seek offers of £5,000,000 (£251 per sq. ft.) for the freehold interest. A purchase at this level reflects a net initial yield of 4.76% assuming standard purchaser's costs.
The current vendor, Gloucester Enterprises, took a 20-year lease on the Gloucester Nightclub and Gloucester Mansions in 1989. The nightclub broke the mould of clubbing in Brighton with its innovative approach which included no membership, no dress code and pub prices.
The freehold was purchased in 2000 and almost immediately the club was leased to the current tenant who still have it operating as the North Laine Brewhouse.
On the reason for now selling the freehold, the directors stated that retirement is appealing and perhaps overdue.
The freehold offers: Ground, basement and unit occupied by Laine Pub Company - Rent £135,000 p.a., eight flats above on AST's - rent £118,800 p.a., potential for rental growth on residential units and development opportunity on the rear of the site (STPP).
Nick Earee, Divisional Director of Fleurets South said, "I am delighted to have been instructed to deal with the sale of North Laine Brewhouse. I've known this substantial site for many years as our previous office was located on Grand Parade and have lived in Brighton for a number of years."
Nick will be working with Elysia Wilson-Gunn, Divisional Director of Fleurets London who added, "We expect strong levels of interest due the potential value-add gain in this sale. Alongside an income of £135,000 p.a. from Laine Pub Company for a further 8.5 years, there is the ability to increase the rents for the eight flats above which currently stands at £118,800 p.a. Additionally there is potential to develop the upper parts to the rear of the site to create extra flats."
Click here to view the sales details. For further information and to arrange a viewing, please contact Nick Earee on 07836 541 790 or Elysia Wilson-Gunn on 07810 541 579. Alternatively, email Fleurets on south@fleurets.com.