Letting by Thwaites close to completion

Related tags Thwaites Leasehold estate Leasing Renting

Flexibility when it comes to negotiating leases or tenancies has helped make the Thwaites letting campaign a success, according to selling agent...

Flexibility when it comes to negotiating leases or tenancies has helped make the Thwaites letting campaign a success, according to selling agent Fleurets.

Thwaites released 14 managed houses onto the market in March with a view to converting most sites into leasehold opportunities.

Fleurets agent Lesley Watmough, based at the Manchester office, said: "Thwaites have shown a

flexible approach during

this campaign and indeed, two of the recent completions, the Dray King in Wigan and the Station Hotel in Haslingden, have been let on tenancies."

So far, 10 of the 14 have completed with two under negotiation.

Thwaites' retail operations manager Ken Lupton said: "We've found that lots of managed house operators are looking at converting lower-take pubs into leases in order to attract good operators and business partners."

Lupton said that he expected five of the sites to be more attractive as tenancies.

"Some operators prefer tenancies because there is not so much money at stake. But on the other hand, lessees will reap more equity from the business in the long run."

Lupton was surprised that two of the higher-take premises were sought after as tenancies rather than leases.

"These pubs turn over £10,000 a week and we didn't expect them to go as tenancies but it is more important to us to find the right operator," he added.

None of the leases have premiums attached to them but Lupton said operators need a significant amount of capital to invest in the business.

"For a typical lease, the new operator would need around £50,000 to buy the fixtures and fittings, pay stamp duty and buy the stock at valuation," said Lupton.

Thwaites is planning to work with the licensees to plan for the ban and the brewery is willing to invest in the outlets. There are no plans to convert any more

of Thwaites's 45 managed houses.

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