Punch Taverns, the second largest operator of leased pubs in the UK, is looking to step up co-investments with the licensees in the sector after the early success with its new lease agreement. The company’s new lease scraps rent reviews unless a licensee requests one and allows licensees to earn market rate discounts on beer sales if they over-perform. The company said that the new deal has led to more entrepreneurial licensees choosing to take its pubs, not least because it is happy to consider co-investment schemes. This year, Punch will invest £40m in around 400 core pubs, which is an average of £100,000 per pub. Punch chief executive Roger Whiteside said: “The fundamental change in mindset in Punch has been to recognise that we can’t succeed at the expense of our licensees. We have had to find ways of growing profits for both ourselves and our licensees. “We have undertaken a complete overhaul of the way we do business in order to create a solid platform on which we could return to growth in our core pubs, which are now receiving considerable investment. Co-investments are proving a very successful way of allowing licensees to realise their vision for a particular pub.”