City Pub Group sells number of pubs as operator eyes post-Covid property opportunities
Premium pub operator City Pub Group has announced the disposal of six pubs for around £17.1m.
Five venues on the south coast – the Walrus, Brighton Beach Club and Lion and Lobster in Brighton, the Inn on the Beach on Hayling Island and The Travellers Friend in Woodford Green, Essex – have been sold to Portobello Starboard for cash consideration of £16.2m.
The transaction is expected to complete on 11 April 2022.
The operator has also sold The London Road Brewhouse, a freehold pub in Southampton for £0.9m. This sale was completed on 18 March 2022.
Chairman Clive Watson, said: “We have achieved a good price for these assets. The capital realised makes us debt free and in an excellent position to take advantage of the current market dislocation to further premiumise our estate and deliver long term growth through selected acquisition.”
In its last full-year update, the group said it generated a 38 per cent increase in revenue to £35.4m in 2021, compared to £25.8m in 2020.
Sales dipped to 85 per cent of 2019 during the Christmas trading period after “most” office party bookings were cancelled.
Watson also said at the time: “The market remains highly fragmented – providing a significant opportunity to continue to grow our estate. As Omicron abates, we will trade more normally and be more confident to carry out our successful strategy for which we are fully prepared.”
The pub operator previously said it was not immune to sector-wide challenges, with energy costs set to rise “significantly in the short term, with a material impact on operating margin.”