CBRE IM hands South London cinema £6.5m price tag
CBRE Investment Management (CBRE IM) has placed a cinema in Streatham, South London on the market with an asking price of £6.5m, representing a 7% net initial yield.
Located on Streatham High Road, the cinema comprises eight screens with 1,364 seats arranged within a 47,143 sq ft building.
The property is let to Odeon Cinemas on a 25-year lease expiring in June 2038, offering a term of 13.3 years. The operator also has an option to renew the lease for another 10 years at expiry.
The cinema produces a passing rent of £483,392 per annum, which is subject to annual RPI-linked rent reviews collared and capped at 1% and 5% respectively. The next rent review is due on 1st July which CBRE IM expects will see an increase in rent of 3.25% to £499,102 per annum.
The property also has an asset management opportunity to contribute to an Odeon ‘LUXE’ upgrade in return for a lease restructure.
The Streatham area of Lambeth is benefitting from a growing population and a high population density, comprising diverse demographics.
Odeon is the dominant cinema operator in the area, facing competition from more boutique operators such as Picturehouse in West Norwood and and Everyman in Crystal Palace, located two and four miles away respectively.
Toby Hall and James Brindley of CBRE UK have been appointed to find a suitable buyer.