Red Oak Taverns has secured a £110m six-year loan to fund its growth plans.
The 208-strong leased and tenanted pub company secured the debt facility from Excellion Capital, a boutique investment and advisory firm focussed on real estate and asset-backed investments.
The facility refinances Red Oak’s existing debt and provides fresh capital to drive their future growth plans.
£50 million of the facility serves as an acquisition facility to drive the purchase of new assets and new investment, including capital expenditure into the existing estate.
Founded in 2011 by executive chairman Aaron Brown and CEO Mark Grunnell, Red Oak has grown considerably over the past decade, successfully expanding its estate from its initial portfolio of 32 pubs.
The new credit line enables management to continue to expand and to drive performance across its portfolio at a time when pubs have faced a challenging climate.
Red Oak completed five acquisitions totalling 34 pubs during lockdown in 2021.
Mark Grunnell, co-founder and chief executive of Red Oak said: “We are pleased to have secured this facility and it has been a pleasure to work with Excellion. Our new financing provides us with the capital to continue to expand our portfolio and helps us along the next stage of our journey.”
Ashley Marks, managing director of Excellion Capital said: “It was a pleasure working with Red Oak, who really impressed us both with the quality of their management team and their operations, especially given the challenges posed by the pandemic.
“Red Oak has proved to be an extremely strong operator in a challenging industry, and we’re glad to assist them in a transaction which will help turbocharge their next stage of growth.”
