Punch Taverns to sell 158 'non-core' pubs
- Published
Pub company Punch Taverns is to sell 158 mostly "non-core" pubs for £53.5m to New River Retail, an investment trust focused on the UK retail sector.
The deal is expected to be completed on 11 September. Proceeds from the cash sale will be used to reduce net debt.
The move is part of Burton-based Punch's strategy to sell its non-core pubs at a rate of about 200 a year.
Punch boss Duncan Garrood said the sale would allow it to focus "on our higher quality core pub estate".
The disposal comprises 150 pubs from the non-core estate and eight pubs from the core estate that "no longer meet our criteria as a core pub".
The pubs being sold generated earnings before interest and tax of £7.3m over the past 12 months, and have a current book value of £52.5m, Punch added.
After the sale, the company's core estate will have about 2,900 pubs and the non-core estate will have about 550 pubs.
Punch will issue a full-year trading update for the financial year to 22 August on 1 September.