In an exclusive interview with the Publican’s Morning Advertiser (PMA) last week, Marsh said that pub values fell drastically between 2008 and 2012 when major tenanted pubcos, including Punch Taverns and Enterprise Inns, started selling off their sites, leading to a “feeding frenzy of distressed pubs at reduced prices”.
However, he said the future for the pub market in 2014 and beyond is bright.
“There is no doubt that prices are now recovering and there is much more demand for pubs,” he said.
“There is usually more than one buyer interested in what is for sale. In 2009 we were lucky to find one buyer, and if we did they would want the pub very cheaply.”
Acquisitions
He said that for the first time since 2008, pub companies have requirements to purchase more sites.
He added that an increasing number of pubs are being sold to experienced pub operators, and “quite a few” of these have funding from the Enterprise Investment Scheme (EIS), meaning more money is available.
“In the past 18 months, more operators, such as Upham Pub Company, have emerged and started running pubs under management rather than with a tenant in place,” he added.
“Pub companies such as Punch and Enterprise have sold a lot of their bad pubs, so the quality is getting better, and that means the chances of selling are greater.
“I can’t think of any other industry where the entry level is so cheap and it gives you somewhere to live.”
Marsh’s comments follow the PMA’s annual Pub Market Report, published last week, which showed signs of a positive turn of fortunes for the trade. Nearly half (49%) of licensees reported an increase in turnover during the past year and 53% of respondents said that they expect turnover to grow throughout 2014.