The strong market for hospitality properties in desirable locations is demonstrated by this recent transaction. Coffer Corporate Leisure has disposed of the freehold interest of 54 Abingdon Road, Kensington on behalf of a private investor for a 3.5% Net Initial Yield. The property was purchased by private Spanish investors for £5.6m.
The former public house is situated a short distance from High Street Kensington and houses long-standing and popular independent restaurant ‘The Abingdon’ at ground floor and basement levels.
The sale, on behalf of the private individual, involved the disposal of the freehold interest subject to a new 25 year lease on the restaurant from completion with index-linked growth throughout the term.
The upper parts contain two luxury three-bedroom apartments, both of which were sold with the benefit of vacant possession.
Mark Sheehan, Managing Director at Coffer Corporate Leisure said, “This property lies in an excellent location. We were inundated with interest from a range of investors from an eclectic mix of high net worth individuals – both overseas and the UK – to property companies and institutional funds.
“The market for assets of this type is the most buoyant I have ever seen it. It’s a great time for long term property holders to consider taking advantage of this strong market.”
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