Curtain rises on £1.9 million virtual freehold investment sale of The Other Palace Theatre, London

24 July 2017

International real estate advisor Savills has brought to market the virtual freehold investment in The Other Palace theatre in Victoria, London for a guide price of £1.9 million, reflecting a net initial yield of 5%.  The sale is on instructions of Aiden Murphy of Crowe Horwath, Receiver of the virtual freeholder.

The modern, purpose-built theatre opened in 2012 and is operated by Andrew Lloyd Webber’s The Really Useful Theatres Group Limited. The business will continue to trade unaffected from the premises during the marketing of the property and post completion of the sale.  Extending to 14,761 sq ft (1,371 sq m) over four levels, the property comprises a 302-seat main theatre and 102-seat cabaret venue plus bar and restaurant areas.  It is located on Palace Street, close to the high profile Cardinal Place and Nova developments. 

The theatre is held on a 999-year lease at a peppercorn rent from 2006, with a 75-year occupational lease expiring in 2087.  The occupational lease and current rent of £100,000 per annum is guaranteed by Andrew Lloyd Webber’s The Really Useful Theatres Group Limited. 

Paul Breen, director in the licensed leisure team at Savills, comments: “This is an incredibly rare opportunity to acquire a modern, Central London theatre investment which is let on a long lease to one of the leading operators in the sector.  The scarcity of long income opportunities in Central London combined with the attractive lot size for this asset will no doubt generate strong market interest from both UK-based and overseas investors”.

 
 

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Key Contacts

Paul Breen

Paul Breen

Director
Licensed Leisure

Savills Margaret Street

+44 (0) 20 7877 4555