Five former Centro pubs sell for £1.4m

Five premises of failed North-East pub chain Centro Pubs have sold to local operators for a combined £1.4m after the company went into administration in November.

The sales of the properties, which are located in Durham, Sunderland, Newcastle Tynemouth and Morpeth, were brokered by property consultancy firm Sanderson Weatherall.

Among the buyers are Derek and Jonathon Haugh, who took the freehold of Shooters in Morpeth, and Lee Smurthwaite, who purchased Shamrox in Durham.

Two further Centro sites, Jimmy Allens in Durham and Victoria's in Sunderland, are still on the market at £50,000 each. They are described as no longer being going concerns.

Tony Brookes, owner of the Head of Steam chain - which has sites in Newcastle, Huddersfield and Liverpool - purchased former Centro pub Reform Place in Durham.

Brookes said he is in negotiations to take on a further two pubs but would not disclose if they were part of the same estate. He said: "This was a good deal for us and the pub is in a great location. Our company is doing well, so now is a great opportunity to cherry pick a few deals. We plan to get our new properties up and running but shall be looking for more pubs at the end of the year as I'm sure there will be other opportunities."

Adrian Mattock, director of licensed and leisure property at Sanderson Weatherall said: "Trading is very hard going for pubcos at the moment - it really is survival of the fittest and the recession has definitely brought a lot of property to the market, either through compulsory administration or companies voluntarily offloading premises that weren't performing.

"As with all property sectors, the recession has also revised prices downwards, opening up the market to smaller local chains or individuals buying going concerns."