S&N offers free of tie leases on vacant pubs

Scottish & Newcastle Pub Company is offering 19 of its vacant pubs on free-of-tie leases via Christie & Co.

The move is designed to find licensees for the pubs, which have been on the market for over four months.

The leases will be fully repairing and insuring and for a minimum of 10 years.

S&N believes it will attract interest from a larger pool of operators, including multiples, brewers wanting a market for their products, existing local free traders wanting another pub but without any capital outlay and tied lessees who want to try the free of tie model.

The pubs are spread throughout the UK from village pubs to food-led outlets with rents ranging from £11-£41,000.

The majority are said to be "in a good state of repair" and are currently being operated by temporary management companies.

"While the current economic situation has not significantly reduced the number of people interested in leasing a pub with us, it has made it more challenging for many applicants to get the funding they need," said S&NPC head of lessee training and recruitment Andy Braithwaite.

"And, in these uncertain times, those with funding are taking longer over their decision making process, increasing the length of time pubs are on the market."

He added: "Having a pub without a permanent lessee is not satisfactory for the individual business, the customers it serves or, given the overheads, for the company as a whole. It makes much more sense to protect the assets of the pub and get in a free of tie lessee to grow the business.

"There are many excellent business opportunities here which would not usually be available free-of-tie and we think that experienced operators will recognise this."

Case study​

The Hill Tavern in Clent is one of the pubs available. Situated at the foot of the National Trust area of the Clent Hills, it is popular with day trippers, ramblers and dog walkers and boasts a 40% food mix.

The pub has been recently refurbished and includes an outside trading area. The rent is £41k per annum.

Neil Morgan, head of pubs at Christie + Co, said: "We are delighted to have been instructed by S&N Pub Company to work with them on this exciting project.

"We are confident that the broad appeal of a free-of-tie lease will generate a high level of interest for these sites."