A prime Cardiff city centre building occupied by nightclub Pryzm has been bought in £3.62m deal.
AEW UK REIT plc has acquired the freehold interest in the near 40,000 sq ft building on Greyfriars Road from the pension fund of BAE Systems.
Pryzm, a subsidiary of Rekom UK, has 14 years remaining on the lease. It is understood that it pays an annual rent of around £300,000.
Alex Short, portfolio manager, AEW UK REIT plc, said: “We are pleased to have acquired the Pryzm Nightclub in Cardiff following the removal of Covid restrictions in Wales permitting the reopening of leisure facilities.
“It has been purchased for a price that will deliver a strong initial yield which will be immediately accretive to shareholder returns, and the tenant is up to date with its rental commitments despite the disruption to trade caused by the pandemic.
"The property is well located and demand for leisure assets remains robust with a limited number of large capacity venues available. We are pleased to add this asset to the portfolio and will continue to target acquisitions where we believe values offer the opportunity to deliver both strong income and capital performance.”
Rekom UK is one of the largest specialist late-night operators in the UK with 46 clubs and bars across a number of brands, which as well as Pryzminclude, Atik and Bar & Beyond.
