Cordea Savills acquires Art Deco cinema in Leicester Square

Cordea Savills has purchased the Vue Cinema in London’s Leicester Square on behalf of a UK pension fund client.

In a statement, Cordea Savills said the investment volume was £23.5 mln (€27 mln). The property comprises a 22-year leasehold interest from freeholders Gascoyne Estates and is being acquired at an initial yield of over 8.25% with fixed annual rental increases of 2%.

Cordea Savills was advised by Cortex Partners, with Fineman Ross acting on behalf of the vendor, Helix Property Advisors.

The asset is the first to be purchased as part of a new mandate of £100 mln to be invested in properties with RPI or fixed rental increases.

The nine-screen cinema, seating 2,500 people, lies in the heart of London’s tourist and leisure industry, the West End. It was rebuilt behind the Art Deco façade in 1993.

Cordea Savills is the asset management subsidiary of UK-based adviser Savills and had AUM of €4.4 bn at end-2012.