Ei Group has exited a managed investment partnership for the first time after selling back its 51% in the Hunky Dory Pubs joint venture to Oakman Inns.
The partnership was formed in 2015 and currently operates The Beech House in Solihull and The Four Alls in Welford-on-Avon, near Stratford-upon-Avon.
Oakman will continue to hold the leases of both sites, which now come under Ei Group’s commercial properties arm.
Oakman founder Peter Borg-Neal told MCA: “This is the type of deal that everybody loves doing - it’s a win-win for us and for Ei Group.”
James Croft, group strategy and retail director for Ei Group, said: “We have enjoyed a successful business relationship with Peter and the team over the period. We have delivered outstanding returns for our business and this sale is an excellent outcome for both parties. Our Commercial Properties business unit will now take over the stewardship of these two outstanding pubs, which are invested to a high standard and both let on long term commercial leases.”
Borg-Neal added: “We have worked closely with the Ei Group in creating two fantastic and fully invested pubs which have delivered a superb ROI for their investors. They are now let on strong covenants and providing far higher rents than were achieved under previous income models, and I believe Ei Group should be immensely proud of their innovative partnership strategy.
“Ei Group has also recognised that for Oakman to continue its development and to reach corporate maturity we need a simplified estate structure which melds effortlessly with our current plans. It speaks volumes for our partnership that they have readily helped us achieve those aims. We have enjoyed working with their exceptional team, and very much hope that we will be working together again in the future.”