Sale and leaseback includes landmark Leicester Square property

Miller Developments is to buy a £78m cinema portfolio that includes Vue’s flagship cinema in London’s Leicester Square.

The Scottish developer and investor is in talks to buy the portfolio at below the £78m asking price.

Vue Entertainment put the six-strong portfolio up for sale at a 5.5% yield after its £350m Bank of Scotland Corporate-backed management buyout in June.

Vue is leasing back the properties, four of which are on 15-year leases.

The portfolio comprises the 65,000 sq ft (6,038 sq m) Vue West End cinema in Leicester Square, and cinemas in Accrington, Lancashire; Park 66 in Bury, Lancashire; the Grafton Centre in Cambridge; Doncaster Leisure Park, Doncaster; and Clifton Moore in York.

They are Vue’s only freeholds and long leaseholds.

HP Four is advising Vue; Hartnell Taylor Cooke is advising Miller.

All parties refused to comment.