Stonegate to offload 23 pubs in portfolio shake-up

The properties are located across the country and are all let on long leases with annual Retail Price Index (RPI) linked rent reviews.

A spokesperson for Stonegate, which is backed by private equity firm TDR Capital, told the Morning Advertiser (The MA) the transaction was “business-as-usual”.

Divestment opportunities

They said: “As the UK’s largest pub company, we regularly review our portfolio for divestment opportunities.”

Savills, has been instructed to manage the sale of the pubs, which are available individually or as small packages, on behalf of Stonegate.

Savills licensed leisure director Stuart Stares said there had been “renewed appetite” in the sector for well-let pub assets, particularly those with “long-term growth potential”.

He continued: “Pubs are proving to be a resilient and increasingly attractive asset class, driven by the sector’s strong fundamentals – long leases, index-linked rent reviews and resilient trading performance.

Favourable outlook

“Investor confidence is being buoyed by improving trading performance, significant reinvestment by operators and a more favourable economic outlook – including falling interest rates and steady consumer demand."

Earlier this week, Stonegate also revealed the freehold of award-winning sports bar, the Famous Three King’s in Fulham, London, had been sold for £4.5m to pub, hotel, live music venue and bar operator BBHL.

Meanwhile last month, the group announced it had converted 200 of its managed pubs over to leased and tenanted and operator-led models, such as Craft Union, as part of its transformation strategy.