Head of Steam expands again in deal worth £1.15m

North-East based pub company Head of Steam has taken on its fourth pub this year with the purchase of a landmark Gateshead pub.

Owner and managing director Tony Brookes said the company had paid £300,000 for the freehold of the Central Hotel on Half Moon Lane, and is set to splash out a further £850,000 on renovations.

The pub will open in a month's time but renovation work to the it's upper floors and exterior will continue for a further seven months. There are plans to convert the first and second floors into a series of function rooms for live music and meetings. The roof of the building will be partially replaced with a terrace bar.

The deal comes after Brookes purchased the leases on pubs belonging to the failed pub group Centro, including Shamrox in Newcastle in September and Reform Place, Durham, in May.

Brookes said: "For many years, the pub has been completely run down. The area around it, immediately after the Tyne Bridge, is now very up and coming with a new apartment block right opposite the pub."

The renovation work to the pub's exterior will be partly funded by the Heritage Lottery Fund and Gateshead Council. The rest of the funds have been secured from the Royal Bank of Scotland.

"Contrary to reports, banks are lending to pubs," said Brookes. We have sourced a lot of the money for this project from them. If you have a good credit rating, a good trading history and are seen as low risk then banks are open for business."

The Central Hotel is the company's ninth pub.