Enterprise raises almost £12m at auction

The latest auction of Enterprise Inns pubs saw seven lots sell raising almost £12m.

Enterprise sold the freeholds of seven London pubs at an auction held by Cushman & Wakefield today, raising £11,887,000.

The sales are subject to the creation of a 35-year lease in its favour.

The pubco has already raised almost £25m from the sale of 12 pub freeholds at two auctions in the past few months.

Today's sales included:

* the Grove Tavern, Hammersmith, (Enterprise will pay £80,000 in rent per annum) had a guide price of £1,125,000 to £1,150,000, and sold for £1.4m.

* the Crown & Anchor, Covent Garden, Enterprise offered rent of £150,000 and the guide price was £2.2-£2.25m. The freehold sold for £2.82m.

* Bayswater's Cock & Bottle, on which Enterprise will pay £100,000 in rent per annum. The guide price was £1.425-£1.45m and reached £1.755m.

* Henry Holland, Duke Street, will have an annual rental obligation of £135,000. It's guide price was £1.925-£1.95m and it sold for £2.132m.

* the Prince of Wales, in Pimlico, will have an annual rental obligation of £100,000. It had a guide price of £1.375-£1.4m and sold for £1.4m.

* the Cockpit, Blackfriars, (Enterprise is offering a rent of £85,000 per annum) had a guide price of £1.225-£1.25m and sold for £1.22m.

* the Exmouth Arms, Marylebone, (annual rent £80,000) had a guide price of £1.1-£1.125m and sold for £1.16m.

A spokesman for Enterprise Inns said: "The result of the sale demonstrates the attractiveness to property investors of the Enterprise covenant, underpinned by quality property assets.

"Enterprise retains an economic interest in these pubs through existing occupational lease arrangements which remain unaffected by these sales.

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

The spokesman added that the sales acheived a multiple of 16.3 times rent, equating to a yield of 6.14%.