Cirrus Inns, the investment vehicle launched to back a premium estate of freehold pubs with rooms, has secured c£22m of new funding to aid its further growth.
Last week, Metro Bank provided Cirrus Inns with £11.67m in funding, enabling it to purchase three central-London pubs, previously owned by DM Group.
At the same time, the now 23-strong group separately raised an additional £10mof equity, which went towards the purchase and will also be used to fuel the company’s future growth.
The new debt facility provided by Metro Bank has allowed Cirrus Inns to acquire the freeholds of the Cross Keys in Chelsea and the Sands End in Fulham, as well as the free-of-tie lease of Fulham’s Brown Cow, bringing the Cirrus London estate to five pubs.
Alexander Langlands Pearse (Langy), chief executive at Cirrus, said: “This marks the first time we have brought some senior debt into the company. We looked at a number of options to do that and Metro Bank was by far the most attractive. They have been incredibly supportive in terms of this acquisition and going forward into Chapter two of Cirrus Inns.”
On the DM Group acquisition, he said: “These are three great pubs run by great people and in amazing locations, which will crown our overall estate. We don’t want to lose the individuality of the pubs, but having five gives us a great platform in the capital that complements the approach we have taken in our pubs across the rest of the country.”
Metro Bank was advised by the law firm Howard Kennedy and property consultants Fleurets.