Heartwood Collection receives additional £100m funding
The premium pub and restaurant operator, which rebranded from Brasserie Bar Co last month, has agreed a new £50m facility with OakNorth Bank.
An additional £50m to date has been invested by Alchemy Partners, with an expected further £50m investment.
“This additional support from OakNorth and Alchemy is testament to the strength of the business that the team at Heartwood is building. It will enable us to build on our success to date as we focus on growing Heartwood Collection into the UK’s leading premium pubs and pubs-with-rooms business," says Richard Ferrier, managing director at Heartwood Collection.
Heartwood currently operates 20 premium pubs and 14 Brasserie Blanc restaurants across the UK and says the new funding will be used for acquisitions of freehold pubs and pubs with rooms.
“This new funding will be deployed for acquiring additional freehold sites, and it will underpin our target of reaching over 60 sites and 500 rooms over the next four years,"adds Heartwood Collection chairman Mark Derry.
"While ambitious, we are confident that our combination of highly skilled chefs, warm hospitality and character-filled pubs leaves us ideally placed within a market which is considerably underserved.”
Heartwood has completed the acquisition of 11 freehold sites over the past 12 months and says it is close to completing a further five in the summer of 2023. It is seeking out opportunities to buy ‘characterful’ pubs in the ‘right UK locations’ that can be renovated and refurbished where required.
“Heartwood Collection is one of our longest-standing clients and Mark Derry and the team are a great example of the excellent entrepreneurs we have in the UK. The Heartwood Inns and Brasserie Blanc brands are some of the finest the UK hospitality sector has to offer," says Ben Barbanel, head of debt finance at OakNorth Bank.
“Despite ongoing economic challenges, the business is set for future growth which is a testament to Heartwood’s leadership and the brilliant team that’s been built. Working alongside the hugely talented team at Alchemy Partners was once again very enjoyable and we hope to complete many more transactions with them in the future.”
