PRYZM nightclub in Cardiff has been acquired by a property investment firm for £3.6million.
AEW UK REIT has acquired the property which is located close to the Principality Stadium and St David’s Shopping Centre. It offers 39,469 square feet of nightclub and bar space and is leased to a subsidiary of Rekom UK (formerly The Deltic Group), trading as “PRZYM” and “Steinbeck & Shaw”, offering over 14 years of tenure not expired.
Rekom UK is one of the UK’s largest specialist nightlife operators with 46 clubs and bars across a number of brands including PRYZM, ATIK and Bar & Beyond. Cardiff University and the University of Wales are located approximately 300m from the property, contributing to the total student population of approximately 75,000.
The purchase price was to reflect a net initial yield of 8%.
Alex Short, Portfolio Manager at AEW UK REIT, said: “We are delighted to have acquired PRZYM nightclub in Cardiff following the lifting of Covid restrictions in Wales allowing leisure facilities to reopen. It has been purchased at a price that will offer a strong initial yield that will be immediately accretive to shareholder returns, and the tenant is up to date with its rental commitments despite the disruption to trading caused by the pandemic.
He added: “The property is well located and demand for leisure assets remains robust with a limited number of high capacity sites available. We are pleased to add this asset to the portfolio and will continue to target acquisitions where we believe stocks offer the opportunity to generate both strong income and capital performance.”