Marston’s has completed the sale and leaseback of a seven-strong package of new build pubs in a deal worth £25.32m, M&C has learnt.
Legal & General acquired the package with the deal, which was brokered by Savills and King Street Commercial, representing a net initial yield of 4.15%.
The pubs are located across the north of England and the Midlands, and include new build sites in Chepstow, Telford, Chesterfield and Middlesbrough.
The transaction was brokered for Legal & General by Olly Foster in Savills Manchester office with the pub business and due diligence undertaken by Tom Cunningham and Pete Scholes. Darren Moorhouse at King Street Commercial acted for Marston’s.
During its last financial year, Marston’s completed 25 new pub restaurants and continued its conversion of Taverns to Franchise – with around 550 now converted. Average profit per pub was up 15% in 2015, up around 40% since 2012.
The company said it had at least 20 new-build pubs, including its first new-build Tavern planned for current year, as well as two Revere bars and five lodges.
Across the group’s Destination business, it has opened over 130 pub-restaurants since 2009. These pubs generate high turnover, with target sales of £25,000 per week and a food sales mix in excess of 60%. The company opened 25 pub-restaurants in 2015, creating 1,250 jobs, and expects to open at least 20 per annum for the foreseeable future.
The company will open its first franchised new build - Teal Farm, Washington, Tyne and Wear this spring.
