Disposal of six pubs

RNS Number : 5242F

City Pub Group PLC (The)

22 March 2022

 

22 March 2022

The City Pub Group plc
(the "Group" or the "Company")
Disposal of six pubs

The City Pub Group plc, the owner and operator of 46 premium pubs across Southern England and Wales and a further 4 development sites, announces the disposal of six public houses (the "Disposal Pubs") in two separate transactions for a total cash consideration of approximately £17.1 million.

The Group has agreed terms and exchanged contracts for the disposal of five of the six Disposal Pubs on the South Coast of England, which include three pubs in Brighton (Walrus, Brighton Beach Club, and Lion and Lobster), The Inn on the Beach on Hayling Island and The Travellers Friend in Woodford Green, Essex. All are freehold pubs, with the exception of Brighton Beach Club which is leasehold. These five pubs, which had a net book value of approximately £17.1 million as at April 2022 and recorded unaudited aggregate site EBITDA of £0.7 million for the year ended 26 December 2021, are being acquired by Portobello Starboard Limited for cash consideration of £16.2 million. This transaction is expected to complete on or around 11 April 2022, subject to successful lease assignment of the Brighton Beach Club.

Separately, the Company has sold The London Road Brewhouse, a freehold pub in Southampton for £0.9m. This sale completed on 18 March 2022.

The proceeds from the Disposal Pubs will be used to invest and expand the Group in other geographies across the UK.

Clive Watson, Chairman, said:

"We have achieved a good price for these assets. The capital realised makes us debt free and in an excellent position to take advantage of the current market dislocation to further premiumise our estate and deliver long term growth through selected acquisition."  

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Enquiries:
City Pub Group Clive Watson, Chairman Holly Elliott, CFO	Via Instinctif Partners
Instinctif Partners Matthew Smallwood	[phone]
Liberum (Nomad & Broker) Chris Clarke Edward Thomas Clayton Bush	[phone]
Peel Hunt (Joint Broker) George Sellar Andrew Clarke	[phone]

 

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