RBS closes in for £700m pubs sale

Related tags Property Scotland

Royal Bank of Scotland (RBS) has moved close to a sale of the Galaxy group of 900 pub freeholds, according to a report in The Mail on Sunday.

The bank's corporate finance arm and Sapient Corporate finance have been working on a review of the portfolio which could net the bank £700m.

Galaxy, previously owned by brewer Scottish & Newcastle (S&N), is likely o be sold following the expected termination of a supply agreement with drinks giant Heineken next year.

RBS acquired the group from S&N in 2000, making the bank a leading owner of pubs.

A deal struck at the time between RBS and S&N gave the brewer rights to provide property management and beer to the pub estate.

In the past two years, three property firms and one trade player are thought to have shown interest in the assets.

In 2008, S&N was acquired by European drinks giants Heineken and Carlsberg. Until now, Galaxy has been languishing in a group of companies in which RBS ended up owning a large share, along with other big lenders Lloyds Banking Group and Barclays.

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