Friday, 13 February 2009

7560 Pubs Go on Market - Sort Of



Only if you happen to be the licensee of them already. Punch Taverns have offered the freehold of all their pubs to the sitting licensee if the price can be agreed. Punch said "we are genuinely interested in selling pubs to our licensees at the right price. Our presumption is that the vast bulk of our estate will still remain with us, but we feel with finance costs so low, there is a window of opportunity now for some of our licensees to obtain a freehold.”

Problem is very few will be able to afford it, given that banks are wary of lending cash and while interest rates are low now, they may not remain so. Nonetheless it is an interesting development and a possible way out for some, from the albatross round their necks that is the average Pub Company.

9 comments:

jesusjohn said...

Hi - interesting post. Do you have the source for the Punch thing - is it on their website? Cheers.

Tandleman said...

Try the Morning Advertiser:
http://tinyurl.com/cdvxyj

Tim said...
This comment has been removed by the author.
Anonymous said...

why have you randomly capitalised "pub company"?

Tandleman said...

Dunno. What's your theory?

Anonymous said...

because you mistook it as a proper noun.

Woolpack Dave said...

At least Tandleman capitalises the first word of his sentences.

Woolpack Dave said...

I think this is good news. The problems might be that Punch want more for the freehold than true market value. I suspect pubs are worth 3/5 of FA right now.

The good thing is that the licensee knows the pub and it's financial performance. Although banks are not keen to lend they will look favourably on a sitting licensee as a safer bet than an unknown.

The value of the lease should be good enough equity, if they don't already owe too much on that.

Tandleman said...

Dave. You are right - twice in fact!