Strong interest in S&NPC's 43 pubs on market
One in four of the 43 Scottish & Newcastle Pub Company sites put on the market with Fleurets one month ago are now under offer at figures over the asking price.
Simon Hall, a director at Fleurets, told the Morning Advertiser that 25% of the pubs were either under offer, or would be by early next week. He added that it was "very significant" that the "vast majority of offers are at or in excess of the asking price".
The pubs are being sold on behalf of the Blue Star Pub Company — S&NPC's joint venture with Feoh Investments. "The reasons are threefold", said Hall, "these are still quite decent properties, confidence is returning to the market as people are willing to get on with things, despite the election coming up, and we have built up a large database of cash purchasers through our sales in the last 18 months".
But Hall thinks the days of pub companies selling off large packages of pubs in one go are over.
He said most multiples are in the same position — "the massive pressure to sell and repay debt has eased."
"As properties close or tenants leave, pubcos will re-examine pubs and put them on the market if they deicde they are not viable. But this will be more of a trickle."
The S&NPC pubs, mostly wet-led community locals, which are closed or on short term arrangements so can be sold with vacant possession. These freeholds are priced between £100,000 and £625,000, with an average asking price of £243,000.
Chris Moore, S&NPC's property director, said: "This sector of the market has bounced back in recent months. Many operators and investors looking at pubs in the £250,000 mark have cash and therefore do not need to find funding."
