Admiral Taverns-owner Cerberus acquires £200m pub portfolio

Cerberus, the US private equity owner of Admiral Taverns, has acquired 63 pubs leased to Spirit Pub Company and Orchid (now part of M&B) in a deal valued at just under £200m.

The pubs, which include 47 Spirit Pub Company sites and 16 pubs previously operated by Orchid Group, were part of a portfolio of 207 hotels and pub being sold by Nick Leslau’s Prestbury Investment Holdings, Tom Hunter’s West Coast Capital and the Reuben Brothers’ Motcomb Estates and marketed under the name Grove.

It is thought that the majority of the pubs are based in the south east and that there is an average of 30 years left on the Spirit leases.

The 144 Travelodge hotels have been acquired by Goldman Sachs, Avenue Capital and GoldenTree Asset Management in a deal valued at just over £500m.

The 63 Spirit and Orchid pubs are understood to generate £13.8m in annual rent, while the hotels are believed to produce £35.5m in annual rent.

The total portfolio was marketed through CBRE.

Earlier this year, Cerberus acquired 134 pubs let to Spirit and Punch Taverns from Prestbury Holdings, in a deal valued at c£200m. It is also thought to have run the rule of the c100-strong pub package placed on the market by Heineken earlier this year.