Stonegate chief executive Simon Longbottom said: “We have a strong track record in picking sites that when we invest, and add a touch of Stonegate magic, we see positive customer reaction and strong returns. The acquisition of a further 10 sites from JDW enables us to extend our diverse range of formats in towns where we currently do not trade.“
Completion is expected within the next few weeks, following which some of the pubs will close for refurbishment into one of the company’s seven trading formats. Further investment will be made in the remaining pubs over the coming months.
Acquisition
The acquisition takes the estate to a total of 664 sites. JDW first put a 50-strong package on the market through CBRE last summer, followed by a further 33 pubs jointly marketed by CBRE and Savills in May.
The company sold 11 of the pubs from the original disposal portfolio to Hawthorn Leisure earlier this year as well as packages to Amber Taverns, Brewhouse & Kitchen and Urban Pubs & Bars. Last month Intertain acquired a JDW site in Chelmsford.
Reasons
Earlier this year JDW chairman Tim Martin explained the reasoning for the disposals to MCA: “For the most part the pubs we put on the market have been fairly close to another Wetherspoon pub. In the aftermath of the credit crunch especially, where we had extremely high-performing pubs we got the opportunity to acquire another pub at a low price so we opened a second close to the first.
“Given that we are essentially a one trick pony, in that we don’t have ten different types of pubs, having two close to each other didn’t work out as planned. That has made us think again about how many pubs we can open in a certain area.”