Highly Secure Public House Investment
31-45 Hopetoun Street | Bathgate | EH48 4PB
subject to contract
Let to Stonegate Pub Company Ltd
Largest pub company in the UK (Net Assets £237m)
Lease recently extended until July 2036 – no breaks
Good trading unit in Town Centre
Let off market rent
Offers in excess of £585,000, subject to contract
Attractive net Initial Yield of 8.48%
Bathgate is situated within West Lothian and has a population of approximately 21,000 people, which is predicted to grow further due to continued housebuilding, primarily on the Wester Inch development. The town enjoys excellent communication links via the M8 Motorway which connects to Glasgow (27 miles), Edinburgh (20 miles) and the rest of the Scottish motorway network. The town also benefits from excellent rail links with Bathgate Railway Station located within walking distance, providing convenient access to all major Central Belt destinations.
Hopetoun Street comprises a busy, secondary retailing location within the town centre, near its junction with George Street, Bathgate’s principle pedestrianised retail thoroughfare. Nearby occupiers including Bank of Scotland, M & Co, Royal Bank of Scotland, Ladbrokes and William Hill.
Hopetoun Street serves as a hub in the town centre for the licensed trade with two independently run bars opposite and adjacent. The upper floor operates as the ENVI nightclub.
The property backs onto Acredale Car Park which offers free customer parking reached via an access lane directly adjacent to the property.
The subjects comprise a ground floor regular shaped unit within a 2 storey building. The upper floor is in separate ownership. The property has an extensive glazed frontage with brick external walls with painted render finish and flat roof.
Internally the unit is well-fitted to the tenant’s corporate standard with large open plan lounge/bar area with fully fitted kitchen and ancillary staff facilities.
We understand the property has a gross internal floor area of approximately 505.00sq m (5,435sq ft).
Heritable (Scottish equivalent of English freehold).
The subjects have traded as a public house since 2006 and was originally let on a full repairing and insuring basis for 25 years beginning 2nd July 2006. The tenant, Stonegate Pub Company Ltd, has operated the premises under the lease since 2014 and agreed in January 2021 to extend the lease until 2nd July 2036 with no breaks.
The current rent is £52,000pa with provision for Open market rent reviews in July 2026 and 2031.
Stonegate is now the largest pub owning company in the UK with 4,580 operating sites. In 2021 they acquired over 4,000 pubs from Ei Group for £1.27bn. As at September 2021 the company had net assets of £237M.
We are advised by the Head of Estates that the property is a good trading unit and further information can be provided to seriously interested parties.
The property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seeks offers in excess £585,000, exclusive of VAT, in respect of our clients Heritable Interest in the property, with the benefit of the existing lease. This reflects an attractive Net Initial Yield of 8.48% after deduction of purchasers costs.
Let to UK’s largest pub operator
Lease recently extended to July 2036 with no breaks
Dominant operator within the Town Centre
Highly secure income at an attractive initial yield
Attractive lot size to an investor
|Anderson Strathern||+44 (0) 131 270 5356|