Numbers grow in big Punch pub freehold sale

Finance brokers report an increased number of inquiries from Punch tenants offered the chance to buy their pubs' freeholds.

In November Punch identified 500 leased sites "unlikely to generate long-term sustainable growth". The freeholds of these were offered to their tenants on a first refusal basis.

No deadline has been confirmed, but Punch says it is coming soon.

Paul Thompson, Acorn Commercial Finance partner, said: "As the deadline approaches, people are starting to sit up and realise they have to do something.

"Around 100 licensees have contacted us, and we can conceivably fund around 60. Most are looking for 100% of the asking price, and while this is not easy to arrange, some lenders are more approachable than others.

"Generally speaking, high street banks are not very amenable to providing pub finance, but rather specialist lenders."

Chris Heard, joint director of Marlborough Leisure, said: "We have had about 15 to 20 enquiries, 12 of which have resulted in offers being made to Punch Taverns.

"Of those 12, eight or nine are good quality deals that are likely to complete if Punch accept them.

"Of the properties we've looked at, the average purchase price is £350,000. There have been anomalies, which include a pub valued at £750,000 in a fashionable central London postcode and one in an unfashionable east London postcode at £210,000.

"I believe that Punch will have to accept some quite low offers, if they are pitched correctly by the bidder and Punch is confident that the bidder can raise the money."

Both Thompson and Heard advised tenants looking to buy their pubs to remember that "in principle" offers without proof of funding are unlikely to be considered.

Nigel Turpin, corporate affairs director at Punch Taverns, said: "The deadline is coming soon.

"We are very pleased with the level of interest so far and are currently in discussions with a number of licensees."