27 January 2016

Significant year for AG&G

In a landmark year for AG&G the London based boutique licensed leisure property advisors have announced that during 2015 they brokered freehold pub sales and acquisitions within the greater London area with a combined value of almost £90,000,000.

Virtually all of the deals were on an individual rather than group basis. Indeed director James Grimes points out that whilst the deals have therefore been more laborious, a targeted approach to marketing resulted in the magnificent results.

For the fifth year running AG&G have also carried out an analysis of each transaction on a size comparison basis, the only pub agent to do so, and it has been found that average prices paid per square foot for pubs within the M25 are currently circa £480. This is down slightly on the previous year when notable ground breaking deals were brokered by AG&G for the likes of the Harp, WC2 (£2,900 psf) and the Ten Bells, Liverpool Street (£1,000 psf) . Low interest rates and lack of supply continued to drive the market prices achieved last year.

James adds that with ownership more fragmented than ever before, particularly of freehold investment properties, the London market has become more fluid and competitive. The polarisation continues between the very good and the not so good. Those sites which trade well, particularly within zones one and two, tend to see competitive bidding for continuation as existing use. Indeed freehold managed house sales have almost dried up within the central areas and thus lateral thinking is necessary. With the Phoenix in Clapham for example, AG&G managed to meet demand by merging both freehold and leasehold interests into a single entity.

In other cases it was all about yield for investors. The All Bar One Richmond was one of the investment highlights where the buyer paid a net initial yield of 4.1% for security of the location and the M&B covenant. The discreet sale of the New Inn, St Johns Wood saw a net initial yield of under 3%.

Of the total pubs sold by AG&G within London during 2015, just under half remained as public houses use which illustrates the resurgence in demand.

The first days back have begun just as briskly for AG&G with four new freeholds and three leasing opportunities in London already being offered to the market and a further three to be marketed by the end of the month.

For further information, contact James Grimes on 020 7836 7826 or e-mail james.grimes@agg.uk.com

AG&G are chartered surveyors specialising in the licensed leisure industry, with the skill and experience needed to value, assess or promote a property not simply as bricks and mortar but as a business. If it involves the price of a licensed premises, its profitability, rental value, investment prospects or value in a dispute, AG&G can help.

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