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Cordea Savills buys London cinema
16 July 2013
Iconic Leicester Square Vue cinema bought for £23.5m
Property investment manager Cordea Savills has announced the purchase of the iconic Vue cinema in London's Leicester Square.
The firm said the £23.46m purchase was on behalf of an unnamed UK pension fund client as part of a wider £100m mandate for properties with an RPI or fixed rental increase component.
Lucy Winterburn, director of investment, Cordea Savills, commented, “The robust fundamentals of the location and covenant plus the attractive leasing structure should make this asset a strong performer relative to our client’s performance objective.”
The property comprises a 22-year leasehold interest from freeholders Gascoyne Estates has been acquired at an initial yield of over 8.25% with fixed annual rental increases of 2%. Cordea Savills was advised by Cortex Partners, while Fineman Ross acted on behalf of the vendor, Helix Property Advisors.
The nine-screen multiplex Vue cinema on Leicester Square, which seats 2,500 people, is situated in London's traditional home for film premiers and was rebuilt and modernised in 1993, while retaining the building's original Art Deco façade.