First assigned Spirit pub lease sells for £400k

By The PMA Team

- Last updated on GMT

Related tags: Landlord, Public house, Lease, Punch, Spirit

First assigned Spirit pub lease sells for £400k
The first assignment of a former Spirit pub converted to lease by Punch has been completed for around £400,000 - four times the price that the...

The first assignment of a former Spirit pub converted to lease by Punch has been completed for around £400,000 - four times the price that the vendor paid to buy the lease a year earlier.

The sale will comfort lessees of the former Spirit pubs that a very strong market exists for assignments.

Punch began converting around 750 Spirit pubs to lease a little over a year ago - agent Christie & Co is close to completing 600 of them.

Personal circumstances forced the original Punch lessee of the Grange in Wallington, Surrey, to seek permission to assign after less than 12 months - within the two-year non-assignable period.

The pub was originally acquired off an asking price of £113,000 and lessee undertook substantial refurbishments to establish the pub as destination gastropub.

Christie & Co marketed the pub with offers invited in excess of £400,000 - after numerous bids the lease was assigned.

Christie & Co director and head of public house Colin Wellstead said: "The Grange sale is one of the highest prices achieved for a lease, confirming the strength of the second-generation lease market and encouraging the many licensees to whom new leases have been granted."

Related topics: Legislation, Greene King

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