'Strong interest' in Elizabeth pub sale

The agent selling the 13 pubs belonging to Elizabeth Estates, which fell into administration in December, has reported "strong interest".

GVA Grimley is selling the freeholds of 13 free-of-tie tenanted pubs, which produce a combined current rent of £213,000.

The pubs are being sold individually or as a group and should produce around £2.5m in sale proceeds.

Andrew Whiteford, of GVA Grimley, said: "We've had a positive response and we'd expect to start the bid process within 10 to 15 working days."

The pubs, located in Suffolk and Essex, are part of the 27-strong chain that includes 14 hotels.

The group was placed into the hands of administrators KPMG due to the financial liabilities of three companies owned by the Suffolk property millionaire Richard Cattermole.

It is understood the decision to call in KPMG was not backed by the firm's directors. Colliers Robert Barry has been appointed to handle the sale of 11 hotels.

The three businesses that were owned by Cattermole and placed into administration were Cavendish Hotels, Elizabeth Estates (BS) and Elizabeth Hotels.

Joint administrator of KPMG, Allan Graham, said: "The company's financial liabilities made it impossible to continue running the businesses as they stood."

In a December statement, Elizabeth Holdings said: "Lloyds Banking Group made the decision to place the hotel management company into administration. The company is not currently in debt to the bank, but because of complex financial arrangements they have decided to take this action."

Elizabeth Holdings continues to operate and run the Hotel Elizabeth Orwell at Felixstowe, which is not affected by this action, together with the Phoenix Hotel in Dereham, the Star Hotel in Great Yarmouth and Arties Mill in Brigg.

The company added: "The other 30 companies within the Elizabeth Holdings group are unaffected by the action taken by Lloyds."