Enterprise to reduce debts with £14.7m sale and leaseback deal
Enterprise Inns is to put seven of its top quality pubs on the market at a public auction in a sale-and-leaseback deal worth around £14.7m.
Property consultants Allsop will sell off the seven pubs on October 15 in an auction at the Park Lane Hotel, Piccadilly, London. Enterprise will then take out a 35 year-lease on the properties.
The pubco has confirmed there will be no change to the existing agreements with the licensees concerned.
A spokesman for Enterprise said: "Enterprise has looked at the market and feels that the properties should be attractive to commercial property investors. The yield is around six per cent on expected selling prices.
"Proceeds will be used to pay down the group debt. There may be further transactions in the future."
Enterprise currently has a bank facility of £1bn, which matures in 2011 as well as 1.6bn of securitised bonds and £1.2bn of corporate bonds.
It has sold more than 270 pubs throughout the year, raising more than £100m, with a similar figure expected to be raised in its new financial year.
The pubs up for auction are:
- Barley Mow in Westminster which has a guide price of £2,225,000 to £2.300,000 with a rent of £175,000 per annum
- The Blue Anchor in Hammersmith which has a guide price of £1,950,000 to £2,250,000 with a rent of £155,000 per annum.
- The Blue Posts in Soho which has a guide price of £1,650,000 to £1,750,000 with a rent of £120,000 per annum.
- The Coat & Badge in Putney which has a guide price of £2,150,000 to £2,250,000 with a rent of £150,000 per annum.
- Duke of York in St John's Wood which has a guide price of £1,750,000 to £1,800,000 with a rent of £135,000 per annum.
- The Goat in Boots in Chelsea which has a guide price of £2,500,000 to £2,550,000 with a rent of £190,000 per annum.
- 51 in Windsor, which has a guide price of £1,750,000 to £1,800,000 with a rent of £130,000 per annum.
