LONDON: The City Pub Group plc, the owner and operator of 46 premium pubs across Southern England and Wales and a further 4 development sites, announces the disposal of six public houses in two separate transactions for a total cash consideration of approximately £17.1 million.
The City Pub Group has agreed terms and exchanged contracts for the disposal of five of the six Disposal Pubs on the South Coast of England, which include three pubs in Brighton (Walrus, Brighton Beach Club, and Lion and Lobster), The Inn on the Beach on Hayling Island and The Travellers Friend in Woodford Green, Essex. All are freehold pubs, with the exception of Brighton Beach Club which is leasehold.
These five pubs, which had a net book value of approximately £17.1 million as at April 2022 and recorded unaudited aggregate site EBITDA of £0.7 million for the year ended 26 December 2021, are being acquired by Portobello Starboard Limited for cash consideration of £16.2 million. This transaction is expected to complete on or around 11 April 2022, subject to successful lease assignment of the Brighton Beach Club.
Separately, the Company has sold The London Road Brewhouse, a freehold pub in Southampton for £0.9m. This sale completed on 18 March 2022.
The proceeds from the Disposal Pubs will be used to invest and expand the Group in other geographies across the UK.
Clive Watson, Chairman, said: “We have achieved a good price for these assets. The capital realised makes us debt free and in an excellent position to take advantage of the current market dislocation to further premiumise our estate and deliver long term growth through selected acquisition.”