On behalf of Earth Properties Ltd, Knight Frank and Savills have secured the freehold sale of the Grosvenor Victoria Casino, Edgware Road to Aprirose Investors for £55.5 million, reflecting a net initial yield of 4.75%. Colliers International represented Aprirose on the purchase of the casino, which is well regarded as the spiritual home of London’s poker scene frequented by celebrity players including Victoria Coren.
Tim Meakes, Head of Specialist Investment, and Colliers International, said: “The Victoria Casino is one of London’s largest and best known casinos In London, and represents an excellent opportunity of a large central London freehold Property secured on the strong covenant of Grosvenor Casinos.
“The casino market continues to perform well in London, and Rank is an excellent covenant for this asset. Our client is looking forward to maintaining the Grosvenor Victoria Casino’s market leading reputation and commitment to its clientele.”
The Grosvenor Victoria Casino attracts approximately 1,200 to 1,400 customers per day and as one of the best performing casinos in London, there is a strong loyal customer base. The casino’s cardroom, better known to poker players as “The Vic”, has 35 tables and can seat 250 players, hosts high-stake cash games and major tournaments. The venue also has two bars and restaurant facilities that overlook the gaming floors. The club is currently undergoing a rolling refurbishment, refit and expansion programme costing in the region of £6 million.
The 71,138 sq ft property is the flagship casino of the Rank Group’s portfolio of over 50 throughout the UK and provides a unique investment opportunity in the West End market. The rental value is approximately £2.8 million a year, equating to £58.11 per sq ft. Rank’s lease lasts for a further 12 years until 2026 with the right to a renewal at the end of the period. Arranged over basement, ground, and two upper floors, the property occupies a site area of approximately 0.7 acres offering excellent long term redevelopment potential.
Richard Stewart, West End Investment team, Knight Frank, concluded: “This transaction represents a rare opportunity to acquire secure long dated RPI linked income in the West End. There is additional comfort to the investor thanks to the casino’s historic attachment to the property as well as the redevelopment possibilities, should they decide to relocate in the long term.”