Nick Leslau has told Property Week he expects an overseas investor from the Far East or Middle East to snap up Madame Tussauds.
Leslau’s Secure Income REIT put the world-famous tourist attraction on the market for £320m this week, following unsolicited approaches from a number of potential buyers. The asking price represents a yield of 4.75%.
“I don’t know the strict definition of a trophy asset, but if I had to guess I’d say Madame Tussauds was probably one,” Leslau said. “My guess is it will be sold to an investor from the Far East, or perhaps a Middle Eastern individual or group. It’s rare something like this comes to the market.”
Leslau expects the sale process to take between four and eight weeks.
Madame Tussauds represents 20% of Secure Income REIT’s portfolio of 28 assets, which also includes theme parks Alton Towers and Thorpe Park.
The freehold property on Marylebone Road in central London is let on a full repairing and insuring lease to Merlin Attractions Operations, the owner and operator of Madame Tussauds.
The lease runs for a minimum of a further 27 years with the option for the tenant to extend by up to a further 70 years upon expiry, bringing the potential tenancy length to almost 100 years.