Admiral unveils first right to buy

19-Apr-2012 - Last updated on 11-Mar-2017 at 22:53 GMT

Admiral Taverns, the tenanted pub operator, has revealed details of the first agreement it has signed with a tenant that gives them the opportunity to buy the freehold of the pub from three years into a lease.

Tenant Eve Zambo has taken a three-year tenancy on the Beef & Barge in Bradford-on-Avon, Wiltshire, with a view to them buying the freehold in three years at a price agreed by both parties. A joint investment of £90,000, which has included adding a new kitchen and redecoration, has been made in the pub.

Admiral said it has also offered two premises to a multiple operator on the same deal, which was revealed in M&C Report last November.

Admiral’s property and strategy director Andy Clifford said: “This is a niche type of agreement that can be hugely beneficial to both of us and a tenant in some circumstances. It works well in selected premises that we have identified for disposal and that require substantial investment and commitment in order to realise the full potential of the business.

“In a market where new businesses simply can’t get the financial support from the banks and lenders to set up, this agreement gives the tenant three years to build the pub and approach lenders with a proof of a viable, sustainable commercial business.

“From our point of view, we will attract hard-working, business-minded individuals who will build a strong business, providing us with good tenancy income, and provide more value to our business than a straight sale would have offered at this time.”
He said the agreement would only used in “special circumstances”.

Zambo said: “The freehold-option allows us time to build up the pub with the support of Admiral Taverns, before taking on the freehold business in the next three years.”
The pub re-opens this week.