Heartwood Collection has announced it has secured an additional £100m funding to support its rollout into freehold pubs and pubs with rooms.
The pub and restaurant operator, which rebranded from Brasserie Bar Co last month, has agreed a new £50m facility with OakNorth Bank.
An additional £50m to date has been invested by Alchemy Partners, with an expected further £50m investment.
Heartwood has immediate access to the new funding, which will be used for acquisitions of freehold pubs and pubs with rooms.
It currently operates 20 premium pubs and 14 Brasserie Blanc restaurants across the UK.
The group has further announced it has seen strong trading, through positive covers and spend per head growth, and is on track to grow to over 60 sites by 2027.
It has completed the acquisition of 11 freehold sites over the past twelve months and is close to completing a further five in the summer of 2023.
It is seeking out opportunities to buy ‘characterful’ pubs in the ‘right UK locations’ that can be renovated and refurbished where required.
As part of its ambition to reach at least 60 sites by June 2027, Heartwood aims to provide nearly 500 ‘boutique bedrooms’ in the same time period – a market which it believes remains significantly underserved.
Richard Ferrier, managing director of Heartwood Collection, commented: “This additional support from OakNorth and Alchemy is testament to the strength of the business that the team at Heartwood is building. It will enable us to build on our success to date as we focus on growing Heartwood Collection into the UK’s leading premium pubs and pubs-with-rooms business.”
Mark Derry, chairman of Heartwood Collection, said: “This new funding will be deployed for acquiring additional freehold sites, and it will underpin our target of reaching over 60 sites and 500 rooms over the next four years. While ambitious, we are confident that our combination of highly skilled chefs, warm hospitality and character-filled pubs leaves us ideally placed within a market which is considerably underserved.”
Ben Barbanel, head of debt finance at OakNorth Bank, said: “Heartwood Collection is one of our longest-standing clients and Mark Derry and the team are a great example of the excellent entrepreneurs we have in the UK. The Heartwood Inns and Brasserie Blanc brands are some of the finest the UK hospitality sector has to offer.
“Despite ongoing economic challenges, the business is set for future growth which is a testament to Heartwood’s leadership and the brilliant team that’s been built. Working alongside the hugely talented team at Alchemy Partners was once again very enjoyable and we hope to complete many more transactions with them in the future.”
Thomas Boszko, partner, Alchemy Partners, added: “I believe that Heartwood Inns are the best food pubs out there. The pubs provide an offer that guests love, and I’d like there to be a lot more of them, and I’d like them to all be freehold. Oaknorth has been a superb partner to Alchemy many times before, and I am pleased to be working with them again. Their support, combined with Alchemy’s continued equity investment, provides new funding which will help fuel our ambitious growth plans.”
