Michelle Perrett talks to Druce Hotels and Leisure's managing director Graham Jackson and director Nick Hodgson.
Do you think that the prices of reassignable leases are going up?
The market in leasehold licensed property has expanded enormously over the last few years following the development of companies such as Punch, Enterprise, Pubmaster and Unique. This has led to an enormous amount of leasehold properties coming to the market for assignment.
Simple economics dictate that when there is an abundance of availability there will be downward pressure on pricing. We are finding that together with the assignable leases there is a continuing increase in the number of new leasehold businesses coming to the market from the pub companies. These are attractive to purchasers because they tend to have lower ingoings when compared to leases for assignment.
Pubs will be required to meet strict noise limits under new European Proposals - will that mean increasing costs for pub properties?
Businesses already providing live entertainment and which are within residential areas may have to improve their noise reduction systems, either by sound proofing or some other techniques and these costs will have to be met. In terms of new pub developments, depending upon location, costs may also increase, although they should be budgeted for within the overall scheme.
What impact do you think licensing reform is likely to have on the sector?
Like all changes there is a lot of talk as to what should and shouldn't happen. We feel that there should probably have been a lot more consultation and consideration with the trade itself, and of course those affected by the trade. The changes would appear to affect town and city centre bars more than rural pubs. All units will be affected by the transfer of licensing to the local authorities.
What are your predictions for the future of the market?This year has been extremely busy for us as a company and current trends do not indicate any change in this. As we all know, it is difficult to predict what the market will do over the long term. If current economic trends prevail we should see a continued stability in the market.