Peachtree tests water with 80-year leases
A new pub company is to trial an 80-year free-of-tie assignable lease on two pubs in East Anglia.
The pair the Sibton White Horse, near Saxmundham, and the Swan Inn at Fressingfield, Eye, both located in Suffolk are being offered by Peachtree Leisure for premiums of £350,000 and £290,000 respectively.
Rent will be £20,000pa for the White Horse and £15,000pa for the Swan Inn. Peachtree's agent Rupert Kelton, of Howard Day Associates, said: "With freehold prices so high and pubco leases under scrutiny, this offers the publican or restaurateur a happy medium that is affordable.
"For tenants who are disgruntled with tied leases this is a good way of acquiring an asset that can be sold or passed down the generations without the hassle of a lease renewal after 20 or 25 years.
"The substantial premium reflects the length of lease term. Rent reviews will be five-yearly and linked to 50% of the rental value on the open market."
One of the founders of Peachtree, Richard Chessells is a former area manager for London brewer Young's. "We are hopeful these offerings will be well received by the sector," he said.
