Provence pub sales pass 200
A survey by the Morning Advertiser has found that Provence has sold more than 200 pubs at public auctions in the five years since it was founded.
The company, which sells freehold investments with a leaseback to itself, has raised more than £70m through the public auction route.
The MA's survey has found around 190 pubs sold in public auctions and another 20-plus pubs sold prior or after auction. But the total number of pub property deals is considerably higher because the company is believed to have sold a number of pubs by private treaty away from the auction market.
Provence sales peaked in quantity terms in 2004 when an estimated 65 pubs were sold for a total of £22.5m, the equivalent of around £350,000 per pub.
In 2005, Provence sold an estimated 56 pubs for around £24.6m, increasing the average price per pub sold to around £440,000.
So far this year, Provence has sold an estimated 35 pubs for a total of just under £13m, with an average sale price of around £375,000.
In a marketing brochure, the company states: "Provence has an exemplary record of paying rent on time every time for the last five years - testimony to the sustainability of our retail agreement. Our rents are based on 17.5% of net sales, broadly in line with the industry norm for 'free-of-tie' operation.
"The proactive and cost-effective approach we adopt in all operations means we that we can achieve levels of trade in excess of the expected norm. We have an established track record of sustainability, increasing sales with-in six months of purchasing pubs and restaurants.
"Our positive, results-oriented approach has resulted in significant turnarounds in business performance.
"Industry norms cover an extremely broad range of properties and operational capability - we are confident that our focused, professional approach to development and operation will continue to deliver results well in excess of arbitrary norms."
