Young's buys three Capital pubs

Capital Pub Company has sold three freehold pubs to South London operator Young & Co in an £8.5m deal.

One of the sites, the Cock & Hen in Fulham, West London, was sold for nearly £3m.

The pub has its own micro brewery on the premises and was managed by pub operator/entrepreneur Scott Collins.

The other pubs are the Porchester in Queensway and the Mitre in Lancaster Gate, in West London.

Capital said the sale will result in a loss on disposal of £0.2m, which would be "largely offset by a £0.15m profit on disposal on the sale of the second floor of The World's End, in Finsbury Park, North London, which was sold for £465,000 in late January.

"The proceeds of the sale will reduce the company's debt and provide additional funds for the company's continued expansion plans.

"As a result of the transaction, the company's gearing will fall to 82% under UK GAAP, compared to 98% at 29 September 2007 as reported in the Interim accounts.

"Furthermore, new agreements have recently been finalised with its main suppliers, which will result in improved buying terms for the Company."

Capital added that "current trading remains in line with expectations and the company remains cautiously optimistic about the future".

Capital acquired the Cock & Hen in January 2006 and refurbished it last March, creating a gastro-style enterprise.

Young's already has a number of pubs in the Fulham area including Finches on the Fulham Road, the Hollywood Arms on Hollywood Road and the Cumberland on Parson's Green.