Geronimo Inns buys six pubs from Punch Taverns

In a long-awaited deal London pub operator Geronimo Inns has acquired six sites from Punch Taverns for an undisclosed sum.

The pubs, currently part of Punch's Spirit managed estate, are all located in the capital.

The deal sees four freehold pubs move to Geronimo - The Northcote in Clapham, South London; The Prince Albert in Battersea, also South London; The Elgin in Ladbroke Grove and the Curtain's Up in West Kensington, West London - as well as two leasehold sites, The Clarence in Whitehall, and the Ben Crouch in Wells Street, in the heart of London's West End.

In a statement Geronimo said a "significant capital expenditure programme of £1.5m" was being planned and around 70 jobs would be created as a result of the transaction.

Following completion, the Geronimo estate will comprise 27 pubs: 12 freeholds and 15 leaseholds.

Rupert Clevely, Geronimo's chief executive, said he was especially pleased to have been able to raise the funds required to secure the deal in the current economic climate.

"The acquisition represents a quantum leap in our development and transforms the balance and scale of our London-based portfolio.

"We have every confidence that these pubs will thrive with the injection of the entrepreneurial flair and proven food expertise for which Geronimo is renowned," he added.

The deal represents the fourth such high profile sale by Punch in the last fortnight, and is yet more evidence that the pubco is determined to raise cash, in addition to its recent £375m share placing, to address its debt profile.

In March Punch effectively hoisted a 'for sale' sign over its choicest pubs, prompting a rush by potential buyers, particularly among regional brewers, to snap up sites. More than 60 key pubs have been offloaded in recent months.

Deals have included 26 sites being sold to Bedford brewer Charles Wells, and six pubs going to London's Fuller, Smith & Turner.