Acquisition of two high quality pubs

2 October 2023

 

The City Pub Group plc

(the "Group")

Acquisition of two high quality pubs

 

The City Pub Group plc (AIM: CPC), the owner and operator of 52 premium pubs across Southern England and Wales, today announces the completion of the acquisition of two additional pubs in London's Soho and in Oxford.

 

The Group has acquired a premium freehold investment which is currently operated as Simmons Bateman Street. The pub is in the heart of Soho and currently generates approximately c£260k per annum in rent. The next rent review is October 2027, the rent is subject to an RPI increase subject to a cap and collar. The lease has 16 years remaining. The Group has acquired the freehold for a cash consideration of c£3.875m from Consolidated St. Giles LLP.

 

The Plough, Oxford is a leasehold pub located on the Cornmarket in the centre of Oxford. One of Oxford's oldest pubs, it benefits from 150 internal covers and 70-80 external covers. The Group has acquired the leasehold interest (9 years unexpired) for a cash consideration of c£330k from 1855 Cornmarket Limited. The annual net turnover of the pub in 2022 was approximately £1.45m with estimated pub EBITDA of £350k. The Group intends to reposition the offer after a modest refurbishment whilst ensuring it maintains the pub's unique heritage.

 

Clive Watson, Executive Chairman of City Pub Group, said:

 

"We are delighted to secure the acquisition of these two pubs both of which are in locations where we have existing pubs nearby. Soho is a fantastic trading locale with high footfall from tourists, theatre goers and residents alike and we're confident the acquisition will be a good long term investment. The Plough is in the heart of Oxford, traded extremely well last year and we have exciting plans to reposition it to further maximise its potential.

 

"The Group will continue to look at further acquisitions which are located in areas where we already have a presence.

 

"As stated in our recent results statement, we are looking at similar acquisitions to complement our premium pub portfolio as well as continued focus on organic sales growth."

 

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