Enterprise raises another £3.4m at auction

Enterprise Inns has raised £3.4m after selling three pubs it put under the hammer at an Allsop auction today, but withdrew nine pubs prior to the auction.

The three pubs sold above their guide prices, which ranged from £775,000 to £1.3m. The initial rent roll is £225,000pa. The total rent roll for the nine withdrawn was £770,000pa.

The pubs were offered as part of Enterprise's ongoing 35-year sale and leaseback deal to gain capital to pay off debts.

The Blackstock in Finsbury Park, North London, sold for £1.05m. It had a guide price of ££950,000-£1m, and rent of £75,000pa. The initial yield is 7.14%.

The Wheelbarrow (formerly Tommy Flynn's) in Camden, North London, sold for £1.57m. It had a guide price of £1.2m-£1.3m, with rent of £90,000pa. The initial yield is 5.73%.

The Stamford Arms in Southwark, South East London, sold for £860,000. It had a guide price of £775,000-£825,000, with rent of £60,000pa. The initial yield is 6.98%.

In addition to the Enterprise pubs, the freehold of the former Halo nightclub in Warrington, Cheshire, sold for £1m. It had a guide price of £500,000-£600,000. And the former Lochiel Bar in Inverness, Inverness Shire, sold for £60,000. The freehold had a guide price of £60,000, with a Heritable (Scottish) tenure.

Yesterday, Enterprise announced it raised £32.46m from the sale and leaseback of a portfolio of 26 freehold pubs to Hermes Property Unit Trust. The initial rent roll is £2.16m per annum.

Enterprise said that the sale proceeds from the deal were above the total book value as at 30 September 2010 of £25.05m.