Stonegate to sell 42 pubs to RedCat

Stonegate has confirmed it has agreed to dispose of a package of 42 pubs to RedCat Pub Company for an undisclosed sum. The acquisition is expected to complete in the Summer.

RedCat is the new investment vehicle from former Greene King CEO Rooney Anand and backed by Oaktree Capital. The Stonegate package marks its first acquisition.

The disposal follows the Competition and Markets Authority (CMA) mandating Stonegate to dispose of 42 pubs when it acquired Ei Group over competition concerns.

The package comprises 30 freehold and 12 leasehold sites and consists of 32 former Ei Group-owned properties and 10 former Stonegate sites.

Following completion of the disposal, Stonegate will comprise 4,630 venues – consisting of 1,290 managed and 3,340 leased and tenanted pubs.

The group said it is currently preparing for a phased reopening of its pubs and bars in line with the government’s roadmap over the weeks ahead.

Approximately 45% of its managed pubs will open on 12 April, with the remaining managed sites reopening throughout May and June as restrictions ease.

It is anticipated that approximately 60% leased and tenanted sites are also planning to reopen 12 April.