Coffer Corporate Leisure has sold the freehold interest of The Slug public house, 490 Fulham Road, SW6 on behalf of a private vendor.

The property, which comprises a public house arranged over three levels, is let in its entirety to Stonegate Pub Company for 16 years. The current passing rent is £158,875 per annum. Stonegate Pub Company is the fifth largest managed pub company in the UK operating over 620 pubs under a handful of brands including the Slug and Lettuce and Yates’s.

The asset was acquired by a private individual for a consideration of £3.3 million, reflecting a net initial yield of 4.55%.

Lawrence Telford, director at Coffer Corporate Leisure said “This is a sizeable asset a short distance from Fulham Broadway station. The property occupies a substantial footprint in a rapidly improving location which is attracting a high volume of inward investment. The pub benefits from a long lease to a Grade A covenant with a strong balance sheet.

The market for assets of the ilk is extremely buoyant at present. In the past 12 months we have transacted over a dozen London pub investments and in most cases achieved prices well in excess of our clients’ expectations.”