Tenants show huge interest in Punch freeholds
Punch Taverns tenants are showing intense interest in buying the freeholds of the 500 pubs that Punch is offering them first refusal on, according to leading commercial lenders to the licensed sector.
Paul Thompson, partner at Acorn Commercial Finance, described the level of interest as "phenomenal" and said the company received 30 calls from Punch lessees on its first day back after the Christmas break.
"For the most part, licensees want to know how much they can borrow and what they'll be paying. In the majority of cases, with a mortgage they would pay half what they are paying in rent now, especially given base rates are so low."
He described Punch's offer to sell to its lessees as a "great opportunity", and urged licensees considering their options to act quickly, saying they had "no time to waste".
The deadline for arranging finance and putting an offer in is March 2009, and the average turnaround on setting up finance is six weeks.
Punch chief executive Giles Thorley said: "This is in line with what we said we would do, and we always write to licensees when their pub has been identified for sale, inviting them to consider making an offer."
Announcing results on 4 November, the company said it had identified 500 leased sites, generating £10m of profits, that were "unlikely to generate long-term sustainable growth and were likely to be sold or converted for alternative use within the next few years".
A small number of the 500 sites are thought to be closed.
• Are you looking to buy your freehold from Punch? Contact John Harrington on 01293 610 481 or email John.Harrington@william-reed.co.uk.
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