Admiral Taverns-owner Cerberus acquires £200m pub portfolio

By Mark Wingett, M&C Report

- Last updated on GMT

Related tags: Spirit pub company, Public house, Goldman sachs, Inn

The pubs include 47 Spirit Pub Company sites and 16 pubs previously operated by Orchid Group
The pubs include 47 Spirit Pub Company sites and 16 pubs previously operated by Orchid Group
Cerberus, the US private equity owner of Admiral Taverns, has acquired 63 pubs leased to Spirit Pub Company and Orchid (now part of M&B) in a deal valued at just under £200m.

The pubs, which include 47 Spirit Pub Company sites and 16 pubs previously operated by Orchid Group, were part of a portfolio of 207 hotels and pub being sold by Nick Leslau’s Prestbury Investment Holdings, Tom Hunter’s West Coast Capital and the Reuben Brothers’ Motcomb Estates and marketed under the name Grove.

It is thought that the majority of the pubs are based in the south east and that there is an average of 30 years left on the Spirit leases.

The 144 Travelodge hotels have been acquired by Goldman Sachs, Avenue Capital and GoldenTree Asset Management in a deal valued at just over £500m.

The 63 Spirit and Orchid pubs are understood to generate £13.8m in annual rent, while the hotels are believed to produce £35.5m in annual rent.

The total portfolio was marketed through CBRE.

Earlier this year, Cerberus acquired 134 pubs let to Spirit and Punch Taverns from Prestbury Holdings, in a deal valued at c£200m. It is also thought to have run the rule of the c100-strong pub package placed on the market by Heineken earlier this year.

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4 comments

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Positive or negative

Posted by david,

Not sure what the Admiral deal has to do with Russia or China, but you seem to have changed your tune - now seeing communist Russia and China's investment as a positive rather than the end of civilisation as we know it.

I wonder what UK investors know about the pub game that foreign investors appear not to.

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Hardley

Posted by The way Forward,

David to quote you "terminally - failing UK pub industry" I think not ole bean.We are seeing well considered investment from private equity groups from all over the globe inc USA, Communist Russia & China just to quote 3. I think the £200,000,000 invested by Cerberus is not loose change and will have to have undergone strict due-dill,risk assessment and regulations.
These guys aint no fools. Many of these investors use their own funds.

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Big players?

Posted by david,

By "big players", you mean a handful of wheeler dealers who are happy to play with other peoples' money. . .

"Investors include government and private sector pension and retirement funds, charitable foundations, university endowments, insurance companies, family savings and sovereign wealth funds".

How many of those investors gave their blessing for their money to be invested in part of the terminally-failing UK pub industry in the shape of Admiral Taverns?

Haven't we seen all this before?

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