Pubfolio puts 340 pubs on market
A total of 340 tenanted pubs owned by Pubfolio, whose sites are managed by County Estate Management, are on the market with an asking price of around £100m.
Many of the pubs have been turned free of tie and are on temporary management arrangements.
One obvious possible buyer is Alternative Asset Investment Management, the company that bought a package of pubs from Marston's earlier for £295,000 per pub.
The £100m asking price would suggest the pubs are of a similar quality as the Marston's package with freehold values just below £300,000 and earnings of just over £25,000 each.
Another possible buyer is Aim-listed London Town, although the package is considerably below its average freehold value, which is above £500,000.
Admiral Taverns, which owns an estate of 2,800 tenanted pubs, has bought pubs of similar quality in the past, but has been buying better quality pubs in the past year.
Average earnings per pub have increased to around £40,000, so the Pubfolio pubs have earnings well below its current batting average.
Nevertheless, Admiral has been confident enough in the past to buy bottom-end pubs, such as the lower half of Avebury, investing in some pubs while selling others.
Most of Pubfolio's estate was originally bought from Punch Taverns in January 2005 in a sell-on from the 800 pub estate of the InnSpired Group that Punch bought in September 2004. The company is owned by coat-hanger magnate Peter Shalson.
The Morning Advertiser received a number of phone calls from tenants last year complaining they were struggling to pay the rent after going free of tie. A source said: "I think a number of Pub-folio's pubs are over-rented."
