3rd Dec 2019 08:49
(Alliance News) - NewRiver REIT PLC said Tuesday it has acquired community pub firm Bravo Inns Ltd for GBP17.9 million.
Bravo Inns owns 44 wet-led community pubs - meaning the pub focuses on drinks rather than food - which are mainly situated in north west England.
The acquisition is expected to generate GBP2.6 million in annualised outlet earnings before interest, taxes, depreciation and amortisation, equal to a yield on cost of 14%, and is also anticipated to be accretive to underlying funds from operations.
The deal will also complement NewRiver subsidiary Hawthorn Leisure's 660 community pub portfolio, and increase the real estate investment trust's exposure to the operator managed pub model.
"The UK pub sector has experienced a recent revival in transaction activity and, as an early investor into community pubs, we have been tracking the success of Bravo Inns for some time. The transaction will increase our portfolio weighting in community pubs and demonstrates the value of our Hawthorn Leisure platform in identifying acquisitions that can deliver higher yielding sustainable cashflows with scale driven synergies," said Chief Financial Officer Mark Davies.
Shares in NewRiver REIT - which is headquartered in London - were up 0.3% at 189.00 pence on Tuesday.
By Dayo Laniyan; [email protected]
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