Enterprise gets £11.58m from freehold sales at auction

Enterprise Inns is considering putting more pubs up for auction after raising £11.58m yesterday from seven London outlets as part of another sale and leaseback deal.

The company said the money raised will be used to "repay group debt".

Enterprise said "existing occupational lease arrangements" will not be affected by the sale of the "high quality" freehold pubs, which will have new 35-year leases.

In a statement, following the Allsop and Co auction in London, the company said it was "pleased" all seven lots sold "realising total sales proceeds of £11.58 million and achieved a multiple of 16.8 times rent, equating to a yield of six per cent".

It added: "Sale proceeds will be used to repay group debt and following this continued success, we will consider further sales on this basis."

In October Enterprise sold six freehold London pubs for £13.15m, also as part of a sale and leaseback deal.

The seven London freeholds sold at yesterday's auction were: the Red Lion, St James; Edgar Wallace, Essex Street, Aldwych; Pembroke Castle, Regents Park; Pelican, Walham Green; Bell Bush Lane, EC4; Uxbridge Arms, Kensington; Rising Sun, Embankment.