Convivial Pubs on the market for £16.9m
The six-strong Convivial, which is led by Kris Gumbrell, is being offered for sale by Christie + Co on a share, or individual asset basis.
The pubs for sale include five freeholds and one very long free-of-tie leasehold (994 years with nominal £1 per annum ground rent). Two have micro-breweries, offering a possible platform for regional brewers to showcase their expertise and range in the capital.
The company’s estate includes, The Mitre Hotel, Greenwich SE10 – freehold – offers in excess of £6m; The Lamb Brewery, Chiswick W4 – freehold – offers in excess of £2.8m; The Clifton, St John’s Wood NW8 – freehold – offers in excess of £2.9m; The Botanist Brewery, Richmond TW9 – freehold – offers in excess of £2.5m; The Crown & Anchor, Chiswick W4 – freehold – offers in excess of £2m The Hansom Cab, Kensington W8 – long-leasehold – offers in excess of £700k.
It is thought that a number of the group’s sites will attract trade buyers, including Greene King, which is previously believed to have run the rule over the entire business.
Neil Morgan, director & head of pubs at Christie + Co, says: “The sale of Convivial London Pubs PLC represents a unique investment opportunity for a group or individual asset sale. All of the assets have significant potential for revenue maximisation, capitalising on their London positioning and the return of consumer confidence — where London, again, is leading the way.
“The pubs would ideally suit central London operators who can slot these non-branded assets into existing portfolios. Alternatively, regional pub companies seeking to take advantage of an ebullient London pub market, strong tourist pound and excellent year-round trading conditions, will potentially view these as trophy assets.
“Add to this the two micro-breweries — which as well as offering regional brewers a foothold in the capital, have the bonus of significant off-sales potential — and we have a rare opportunity indeed.”
At the end of last year, Gumbrell told the Publican's Morning Advertiser sister title M&C Report that he was keeping an “open mind” on a possible sale of the business.
The company, which was previously run as Capital Pubs II, is understood to have previously examined options for a possible sale over the last 18 months.
Gumbrell said there had been a “couple of sniffs” of interest, although this included a number of “tyre kickers”.
In December, it announced an 111% rise in pre-tax profit to just under £1m for the year to 29 September 2012. Pub EBITDA was up 9.9%, or 22.4% on a like-for-like basis, to £1.7m.
Brewhouse & Kitchen, the Enterprise Investment Scheme (EIS) venture led by Gumbrell and former Mitchells & Butlers (M&B) executive Simon Bunn, opened its first site, a former Wetherspoons pub in Portsmouth, earlier this year.
The new venture shares a number of if its shareholders with Convivial.
