A Stonegate spokesperson told The Morning Advertiser (The MA): “We are looking at options for the Platinum portfolio, of circa 1,000 leased and tenanted pubs, which could include a refinancing, partial sale, or full sale of the Platinum sites. However, as we explained to our bondholders, no decisions have been made. We are continuing to make good progress on our transformation strategy.”
The Times report, published yesterday (16 November), said Stonegate bosses had begun discussions with advisers ahead of the end of a non-call period on the Apollo financed securitisation of the Platinum estate.
Longrunning efforts
Stonegate has explored major disposals before. In early 2023, the group was reported to be seeking a sale of around 1,000 pubs to raise up to £800m to pay down debt, with Eastdil Secured advising.
That process was not completed, but reflects ongoing efforts to deleverage following the 2019 acquisition of Ei Group.
That deadline lifts in January, meaning Stonegate can sell or refinance the pubs for the first time since securing a £638m loan against them in 2023.
According to the report, the portfolio could be worth up to £1bn, with the pubs considered among the most valuable freeholds in Stonegate’s 4,300 site estate.
The group attempted a similar disposal last year before proceeding with the Apollo deal.
Strategic shift
The group, owned by TDR Capital, remains under pressure to reduce its debt burden, which stood at more than £3bn in the year to September 2024.
Finance costs hit £455m, driven by high interest rates and the cost burden of last year’s national insurance and national minimum wage increases.
Stonegate has already begun shifting hundreds of managed pubs into its leased and tenanted division, with chief executive David McDowall reporting an average £110k uplift in pub level profit from conversions. McDowall, who joined from BrewDog in 2023, has framed the strategy as building “more resilient, community driven pubs”.
A potential disposal of Platinum assets would continue that direction of travel, reducing debt while leaning further into the leased and tenanted model.
Sources cited by The Times said private equity buyers may be interested in bulk acquisitions given the scale of the portfolio.
The move comes ahead of a challenging cost landscape for large operators, with business rates reform, wage inflation, energy volatility and financing costs continuing to squeeze margins.
