Punch Taverns has sold six of its managed pubs within central London to Fuller’s for an unconditional sum of £21.1m.
The Spirit Group led pubs sold to Fuller’s include the Scarsdale in Kensington, the Red Lion on Parliament Street, the Queen`s Head on Brook Green, the Hereford in South Kensington, Ye Olde Mitre in Hatton Garden and the Swan on Bayswater Road.
The sites collectively generated pre tax and interest earnings of £2.5m for the financial year ending 23 August 2008, with a book value of £25.6m. Punch intends to use proceeds from the sale, which will be satisfied in cash, to reduce its debt and reinvest in the estate.
Giles Thorley, chief executive of Punch Taverns, said: “This transaction is in line with our stated strategy of increasing free cash flow and reducing the overall level of our debt, whilst seeking to maintain investment in our high-quality pub estate.”
According to the Morning Advertiser, Punch also put a package of 19 Spirit pubs on the market this week, comprising of 17 freeholds and two long-term leases, through estate agents Christie Co.