A popular Brighton pub is to be sold at auction with a nearby bank building also on the block.
The Shakespeare’s Head, in Chatham Place, on the corner of New England Road, has a reserve price of £725,000.
An unnamed vendor is selling the freehold through the London property consultancy and auctioneer Allsop.
The auction catalogue indicates an initial yield of more than 10 per cent from the pub’s annual £74,000 rent payments.
The catalogue said: “The entire property is at present let to Zelgrain Ltd, guaranteed by the Laine Pub Company Ltd for a term of 10 years from 27 January 2012 at a current rent of £74,176 per annum.
“The lease provides for annual rent reviews (and) the pub is free of tie and machine income share arrangements.
“For the year ended 30 June 2013, Zelgrain Ltd reported a turnover of £1.54 million, a pre-tax profit of £73,325 and a net worth of £10.27 million.”
Zelgrain merged with another pubs and clubs business, C-Side, to become InnBrighton, which is now known as the Laine Pub Company.
The sale is not expected to have any immediate effect on the pub and the rent review due in 2017 is capped at 1.5 per cent.
Half a mile away in London Road the free hold of the Natwest Bank building is for sale with a guide price of £700,000 to £725,000.
With an annual rental income of £48,400, the property has an initial yield of almost 7 per cent. A rent review is due next year.
The building also includes four flats and a rear yard with car parking spaces.
The vendor is believed to be the asset management business Threadneedle.
The auction is due to take place at the Dorchester hotel in Park Lane, London, on Wednesday 10 December.
