Cerberus in talks to sell c£400m pub package

The pubs included in the package derive from separate acquisitions Cerberus made back in 2014​.

At the start of that year, the company acquired a 134-pub portfolio (entitled the Forest package), comprising 102 pubs let to Spirit (now part of Greene King) for c£170m and 32 let to Punch Taverns for £33m.

Expanded portfolio

In August of the same year, Cerberus acquired 63 pubs leased to Spirit and Orchid Pub Company in a deal valued at just under £200m.

The pubs, which included 47 Spirit sites and 16 pubs previously operated by Orchid, 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.

Likely buyer for the package

Cerberus subsequently placed 16 sites pubs leased to Spirit from the Grove package on the market, the majority of which were based in London.

According to the Estates Gazette​, the Ontario-based, media magnate Jimmy Lai, owner of Vintage Hotels, is the likely buyer for the package.

In January 2012, Cerberus entered the UK pub market with the acquisition of the c1,100-strong Admiral Taverns business from Lloyds Banking Group for c£200m. Admiral is not part of the deal.