City Comment: Hamish Champ

It seems that barely a week goes by without yet another bid being launched or a deal being completed for one pub estate or another.

According to a number of property experts I spoke to last week the acquisition/disposal machine is set to grind on throughout the licensed sector for the foreseeable future, such is the demand for properties that offer such a good cash flow stream and have inherent value in themselves.

It might be reasonable to point out that it is in their interest to talk up the market, but nevertheless said individuals also pointed out that the notion of consolidation in the sector was somewhat of a misnomer.

A plethora of deals suggests fewer players holding onto more bricks and mortar, but these self-same deals prompt further fragmentation, argue the property boys. While it is true that certain established groups are snapping up anything that raises its head above the parapet, these entities inevitably churn parts of the lower end of an acquired package of pubs to either other smaller existing players or newcomers - property players, private equity types, etc.

The market is as hot as its ever been - witness GI Partners' recent half a billion quid acquisition of some unwanted ex-Spirit pubs. With the appeal of pub properties on the up and the interest rate environment currently benign and likely to stay that way for some time, more activity from new entrants is likely. Meanwhile, some "old friends", such as Alchemy Partners, have returned to the market, attracted by yields and asset values.

So, consolidation? Or a bizarre form of re-distribution?

• Apropos of nothing in particular, a couple of my City chums recently voiced their displeasure at the phenomenon of staff in certain bars (no names, no pack drill, but we know who you are) slapping change from a round of drinks onto a little silver tray, instead of the traditional practice of handing it over by, er, hand. Why do they do it, my be-suited friends wailed? It's fiddly to gather up the coins - maybe that's the point? - and illustrates a complete lack of personal interaction with the customer, they complained. Do pubs in your estate follow this rather irksome practice? If so, why? Explanations on a postcard, etc...