Pubfolio puts 340 sites 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 in recent years with as much as 60% of the estate now trading on temporary management arrangements.
One obvious possible buyer is Alternative Asset Investment Management, the company that has 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 has 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.
Peter Brook, the boss of tenanted operator Indeed Group, knows the estate well from his days running InnSpired Pub Company and could be a buyer.
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. A source said: "I think many of Pubfolio's pubs are over-rented and it's one reason there are so many temporary arrangements."
