24th Aug 2015 06:54
LONDON (Alliance News) - Punch Taverns PLC on Monday said it has agreed a deal to sell 158 non-core pubs to retail sector-focused real estate investment trust NewRiver Retail Ltd for GBP53.5 million.
Punch said the deal was in line with its plan to sell its non-core estate at a rate of around 200 pubs per year. The deal works out at an average of GBP340,000 per pub, ahead of book value and significantly higher than the average proceeds the company has received for previous non-core disposals.
The agreement is unconditional and expected to close on September 11.
NewRiver said it has identified a number of potential value-enhancing development opportunities for the pub portfolio, including residential new builds on surplus land, the extension or part-conversion of the pub assets for residential use, and the building of new convenience stores on the sites.
"This transaction is in line with our stated strategy of disposing pubs within the non-core estate, reducing the overall level of our debt, whilst focusing on our higher quality core pub estate," said Punch Chief Executive Duncan Garrood.
"We are delighted to announce the acquisition of the pub portfolio from Punch Taverns, which represents a strategic progression for NewRiver, following our acquisition of a similar portfolio from Marston's in late 2013, the successful result of which has led us to identify similar opportunities," said NewRiver Property Director Allan Lockhart.
By Sam Unsted; [email protected]; @SamUAtAlliance
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