An opportunity to acquire the freehold interest in a Grade II Listed, 1930’s Picture Palace in Harrogate has been brought to market by CBRE’s Operational Real Estate team.
Leased on a 25 year term to the UK’s largest cinema operator, Odeon Cinemas Limited, the property has a 16.3 year unexpired term with annual RPI-linked rent reviews subject to a 1% collar and 5% cap. Offers are sought in excess of £7.00M, reflecting a 7.00% Net Initial Yield.
Situated on East Parade on the edge of Harrogate Town Centre, the 5-screen cinema contains 892 seating provisions within a 23,971 sq ft gross internal area and holds partial ownership of an 88 space car park.
Alfie Stephenson, CBRE’s operational real estate ream, commented: “This iconic building has prospered under the operation of Odeon since it opened and is a firm fixture on the Harrogate leisure scene.
“The long-income investment opportunity enables a keen investor to acquire the freehold interest on a cinema leased to the UK’s largest operator on a term that benefits from annual RPI-linked rent reviews.
“Our research shows that the cinema sector is set to have a strong 2022 with attendances anticipated to return to 100% of 2019 levels which makes this a timely opportunity.”