City Pub Group has acquired a 49% stake in Kensington Park Hotel and increased its shareholding in Mosaic Pub and Dining.

The deal for Kensington Park Hotel, a pub in Ladbroke Grove, sees the group acquire a stake in owner Barts Pub, for £0.75m.

The leasehold has large trading areas on the ground and first floors, seven hotel letting rooms and potential for a further four letting rooms on the top floor.

The 155-year-old venue was kept as a pub following a campaign by Eddie Izzard and Cerys Matthews.

City Pub Group will operate the pub under a management contract and has an option to buy the freehold for £5.5m up until March 2024.

The company has also increased its stake to 24% in certain companies within the Mosaic Pub and Dining Group, through the acquisition of shares in The Galaxy (City) Pub Company, The Pioneer (City) Pub Company and The Sovereign (City) Pub Company, for a total of £1.18m.

The company acquired a 14% stake in the Mosaic companies in September 2020 and this transaction takes its total investment to £2.42m.

Mosaic own nine prominent pubs, predominantly in London and Birmingham, of which seven are freehold.

The City Pub Group and Mosaic jointly negotiate their major liquor supply deals (draught beer, spirits, wines, soft drinks) and the Company’s investment will help to cement this relationship.

It is the intention of both the Company and Mosaic to assist each other in advancements in technology, especially in areas such as the City Club app.

City Pub executive chairman Clive Watson is an investment consultant to Mosaic.

Richard Prickett, non-executive director of the City Pub Group, is a non-executive director of The Pioneer (City) Pub Company Limited.

Watson commented: “These two corporate transactions demonstrate that the Company can provide liquidity for shareholders in EIS companies on a staged basis, with the aim of significantly increasing the size of the our portfolio over the next two-three years. We will continue to look at selective, high quality single pub acquisitions as well as larger estates.”

 

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