NewRiver has disposed of a portfolio of 22 community pubs to a private equity investor, in a deal worth £14.8m.

The sale figure represents a net initial yield of 5.6%.

The pubs previously formed part of the Trent portfolio of 202 community pubs acquired by NewRiver from Marston’s in December 2013.

The 22 pubs had been acquired for £10.7m and generated £5.6m of EBITDA during the period they were owned by NewRiver.

The portfolio is made up of a group of assets on which the Real Estate Investment Trust, secured contracted income in December 2016, by surrendering its four-year leaseback agreement with Marston’s 13 months early, and agreeing new 15-year RPI linked leases with Marston’s.

As a result, the return profile of the assets differ from the remainder of NewRiver’s pub portfolio, and therefore it has determined that the capital can be deployed more profitably elsewhere.

Mark Davies, chief financial officer, NewRiver, said: “We are delighted to have completed the sale of these community pubs.

“This is just the latest example of our commitment to actively managing our pub portfolio and to recycling capital where assets no longer meet our return criteria.”

In August, NewRiver reported that it was soon to complete its 50th refurbishment project. At the time four projects, totalling £101,548 had been completed in 2018, while last year saw £1,453,932 spent on 43 pubs.