Capital Pub Company, the Aim-listed managed pub operator, has exchanged contracts to sell three of its freehold pubs in Greater London to Young’s, the brewer and pub operator, for £8.5m.
The three pubs, which are the Cock and Hen in Fulham, The Porchester, and the Mitre, reported a combined annual ebitda in excess of £400,000 for the year to December 2007.
The company, which will be left with an estate of 24 pubs after the deal completes on 10 March, said that the sale would result in a loss on disposal of £200,000.
It said this would largely be offset by a £150,000 profit on disposal on the second floor of its World’s End site, which was sold for £465,000.
The group said proceeds of the sale would be used to reduce its debt and provide additional funds for its continued expansion plans.
The company said as a result of the transaction its gearing would fall to 82% compared to 98% at 29 September 2007.
David Bruce, chief executive, said: “Capital Pub Company's aim is to expand its estate to 50 outlets in the medium term. This deal significantly reduces our gearing, allowing us to take advantage of opportunities in the future.”
AG&G advised Capital on the deal.
