Freehold market opens up

Individual licensees should have less competition in buying freeholds, as pubcos continue to cut back on acquisitions, according to a leading agent.

In its quarterly analysis of the market, Christie + Co said the decision by companies, such as Admiral Taverns and Enterprise Inns, to curtail their activity would present openings.

Neil Morgan, director & head of pubs, said: "With the bigger companies not buying as much, regional brewers, new entrants and private buyers should have the chance to snap up some pubs."

He added that at the lower end of the market, more "realistic prices" would be offered on a "bricks and mortar basis" because often they have closed and are unable to offer recent trading accounts.

"Pubcos are keen to have a general clear-out and we are seeing a lot more sensible prices," Morgan said.

"There is definitely a levelling out of prices and more of a sense of realism."

On leaseholds, he added: "Leaseholds have always been a challenge to sell, even in the best conditions, but now it is extra tough."

However Morgan said that despite an atmosphere of "doom and gloom" in the market, deal activity had continued to be "robust and diverse".

Meanwhile, Barry Gillham, chairman of Fleurets, said there were more freeholds on the market than there had been for a long time. "Seventy-five per cent of pubs on the market are freehold," he said.

On the credit crunch, he added: "It's come back to a market which favours cash buyers."