Punch sells six pubs to Fuller's for £21m
Punch Taverns has sold six pubs to London brewer and operator Fuller's for £21.1m, including the flagship Red Lion in Westminster — a favourite with MPs.
The pubs are all freehold and located within central London with the deal expected to be completed by 6 April.
The six Spirit managed pubs are the Scarsdale in Kensington, the Red Lion on Parliament Street, the Queen's Head on Brook Green, the Hereford in South Kensington, Ye Olde Mitre in Hatton Garden and the Swan on Bayswater Road, which overlooks Hyde Park.
The pubs generated £2.5m worth of earnings before interest and tax in the 53 weeks to 23 August 2008 and had a book value of £25.6m at that time.
The proceeds from the sale will be used by Punch to repay debt and reinvest in its estate.
"This transaction is in line with our stated strategy of increasing free cash flow and reducing the overall level of our debt, whilst seeking to maintain investment in our high-quality pub estate," said Punch chief executive Giles Thorley.
Fuller's will run the pubs as managed houses, bringing its managed estate to 162 and total estate to 365 pubs and hotels.
Fuller's chairman Michael Turner said: "I am delighted that Fuller's is able to acquire these six wonderful pubs, right in our heartland of central London.
"These are exceptional quality assets that fit well into our existing portfolio and we will move sympathetically to fold each pub's unique character and heritage into Fuller's. We continue to build our business for the long term and hope existing and new customers will come and enjoy these pubs for many years."
Punch also put a package of 19 Spirit pubs on the market this week, comprising of 17 freeholds and two long-term leases, through Christie + Co. The pubs are located across England. Sales at the pubs range from £5,000 to £11,000 per week.
