Pubs & Restaurants - Client Profiles

Private client

Brief

Undertake a valuation for probate purposes, of a large north London pub with upperparts. The valuation formed part of a larger portfolio, comprising offices and commercial properties.

Property

Freehold: large high street pub – let in part to Food & Fuel Limited:

  • Ground, basement and first floors let to pub/bar operator on a FRI lease with c. 8 years unexpired
  • Two upper floors, separately let to a local residential investor comprising 11 flats - all sub-let-on ASTs

Result

Provided detailed rental and valuation advice based on the pub tenants trading potential and thus ability to cover the rent, plus advice relating to the security of rent received on the flats.

The flats were sub-let on an individual basis at AST rents higher than the aggregate passing rent under the terms of the head lease - as a result, the default risk to the client was greatly reduced.

Private client

Brief

Value the freehold interest of a destination food venue with rooms, overlooking the West Dorset Jurassic coastline and undertake a strategic review of the business. The owners are successful entrepreneurs and former owners of London's Groucho Club.

Property

With stunning views of Chesil Beach, the property comprises a licenced restaurant and bar with nine individually designed bedrooms – some of which have a sea view. The owners had gained planning consent for a further seven bedrooms as the property is a popular summer destination, which has also established itself as a wedding venue.

Result

Our Valuation Report and Business Review helped focus the owners on controlling variable costs and, where possible, trim some of the fixed costs - by negotiating with suppliers to help maximise its operational performance, as well as profit. This in turn could lead to an increase in Market Value.

National bank

Brief

Valuation for secured lending purposes of a traditional public house. The property was to be valued subject to, and with the benefit of, an occupation lease expiring in 2025.

Property

A traditional public house with four-bedroom residential accommodation to the upper floors, located in a mixed residential and industrial location.

Result

Given the trading style, location and nature of the property, and given there were no like for like comparables, we adopted the profits method and divisible balance approach to calculate its Market Rent. The report was completed within the agreed timescale.

 

 

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