Marston’s, the brewer and pub operator, has agreed a £28m forward-funding deal with Standard Life to as part of its newbuild pub expansion programme.
The funds will be used for the development of six sites in areas including Devon, Kent and South Yorkshire, with a 40-year sale and leaseback agreement to Marston’s, according to the publication. Marston’s has an option to buy back the freeholds at the end of the duration of the leases.
Standard Life has also agreed to an additional three site developments.
The deal reflects an initial yield of 4.15%. King Street Commercial advised Marston’s and Savills represented Standard Life.
At its half year results to the 5 April, Marston’s said it expects to have opened 100 newbuild pub restaurants by the end of the year. It’s on-track to open 27 this year at least.
The company aims to open 25-30 pubs in 2015 and 2016; in total the programme would have generated 10,000 new jobs over eight or nine years.
