Pension fund puts Marston’s pub portfolio on the market

British Steel Pension Fund is seeking to sell seven freehold and long leasehold Marston’s pubs for £22.1m. The pension fund has appointed CBRE to find a buyer for the portfolio, known as Project Mars. A deal at this pricing would reflect a 5.75% net initial yield. The pubs are located in Bilston, Southport, Godstone, Ebbsfleet, Scunthorpe and Skelton. All of the properties are operated by Marston’s with guarantees from its topco. The leases expire in 2058 and have RPI annual kickers. Additionally, the tenant has a £1 buyback option at lease expiry. David Fraser, executive director, operational real estate at CBRE, said: “Project Mars offers an excellent opportunity to acquire premium assets with strong property fundamentals whilst providing an attractive return on investment, with more than 35 years term certain and annually increasing, indexed rents.” To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews