Punch to help out tenants with rent concessions
Punch Pub Company has announced that it is to grant 256 of its tenants rent concessions.
The 4,500-strong pub company is giving the concessions to a variety of licensees across its estate. The company has been accused of forcing licensees out of business by charging high rates for its rent and beer.
Francis Patton, customer services director of Punch Pub Company, said: "There is no simple answer as to why we have those concessions in place, as each case is different.
"If there is a problem or someone is struggling then we have a look at the circumstances and if we feel that a concession is necessary then we will do it."
The company admitted that almost one in five of its pubs is underperforming or would be better off converted into housing. This has prompted the company to seek to turn around 676 of these units through investment and recruitment and to earmark another 141 for sale to alternative uses.
Punch has also announced that pub investment has provided some rewarding opportunities for organic growth, generating returns of approximately 30 per cent.
It has invested £12m into 168 projects so far this year which has been complemented by its tenants investing over £2m.
The company is continuing with its aggressive acquisition strategy. It has also recently announced that it has spent £5m on 12 pubs in Devon, Cornwall, Taunton and Bridgewater since November while it purchased 13 pubs from Western Castle for £3.9m last month.
Over 70 per cent of Punch's estate has been formed through the acquisition of pubs which previously made up core estates of former national brewers. The company's property estate has been valued at £2.146bn.
Related articles:
Punch sets out obligations to licensees (1 May 2003)
