Heineken buys entire RBS Galaxy pub estate for £412m
Post a commentBy Luke Nicholls, 02-Dec-2011
Related topics: Business, Venues, Pubs & Bars
Royal bank of Scotland (RBS) has sold its entire Galaxy estate, a portfolio consisting of 918 pubs, to Heineken in a deal worth £412m.
Heineken will add the 818 pubs to its existing 462-strong estate
The deal is the biggest of its kind in almost a decade and will add to Heineken’s existing state of 462 pubs. RBS, which initially acquired the pubs in 1999, said the sale was in line with its strategy to reduce non-core assets.
Heineken subsidiary Scottish & Newcastle (S&N) has always managed the tenanted pub group for RBS. It will receive £10m from Heineken to wind-up this existing contract.
Stefan Orlowsku, managing director of Heineken UK, said: “There continues to be an important role for the great British pub in the UK on-trade, and this acquisition is a significant vote of confidence in the channel.
"Owning the Galaxy freehold will allow us to continue the successful transformation of our pub business, concentrate on operational excellence and deliver long-term value from a high-quality, well invested pub estate."
Return of investor confidence
Peter Hansen of RBS deal adviser Sapient Corporate Finance, added: “This is the largest tenanted transaction since December 2003 when Punch Taverns acquired Pubmaster for £1.2 billion and shows the return of investor confidence in the future of the tenanted trade, particularly larger, high quality, tenanted pubs. The market is showing signs of a return to more normal conditions.”
Sapient has advised on 47 major deals in the sector since March 2003, worth a total of £7.3bn. In April this year, it advised Brockton Capital on the sale of the 14-strong London estate of Realpubs to Greene King for £53m and last year it advised Mitchells & Butlers on the sale of its wet-led estate to the Stonegate Pub Company for £373m.
7 Dec 2011
Heineken buys entire RBS Galaxy pub estate for £412m
6 Dec 2011
Stoke-on-Trent Pub For Sale, Stoke-on-Trent Property Investments For Sale
Freehold Pub For Sale In Stoke-on-Trent, Staffordshire LOCATION The Vine is located on a residential road. There are some local amenities relatively nearby. There is quick access onto the A50 (Uttoxeter Road) and Longton Rail is just over 0.5 mile away. PROPERTY Brick built detached building. Mixed 1 and 2 storeys with single storey out-building to side. FURTHER INFORMATION Vacant possession Development potential (STPP) Approx gross site area: 5,618 sq.ft* Approx ground floor foot plate: 2,899 sq.ft* (of pub only) Rateable Value: £3,000 Unconditional offers are invited for our clients unencumbered interest The property represents excellent value for continued licensed use / owner occupation. There is also potential for redevelopment (residential / commercial / mixed use) subject to gaining the appropriate Local Authority consents. The existing use class of the property is A4 'Drinking Establishments'. Planning consent is not required to change the current use to A1 (shops), A2 (financial and professional services) or A3 (restaurants and cafes). Please note that VAT may be applicable in this matter. Staffordshire Pub for Sale 3 Dec 2011
Falkirk pub serving 2,000 meals a week after joint investment - Eat Out Magazine
A Punch Taverns licensee couple in Falkirk are serving as many as 2,000 meals a week after a £350,000 joint investment between the company and themselves.
Gary and Wendy Horne have been running the Coppertop in the town since 2009. The couple has invested around £120,000 in the pub with Punch Taverns making an investment of £230,000. The joint investment has transformed the business into a busy food-led business – it has a 75/25 trading split. The Coppertop is so busy at weekends that it has to turn away as many as 300 to 500 customers.
The food offer is focused on good-value traditional British food such as steak pies and fish and chips, with the average dinner spend of £8 per head.
Among the eye-catching features introduced during the refurbishment, there is a £10,000 five-food long LED screen that looks like a real fire.
Gary Horne, who previously ran a Punch pub a decade ago, said: "Punch is a totally different company to the one I knew a decade ago. It's been brilliant to me in the last couple of years – very supportive. It's given me the opportunity to make decent money here. If I can find another Punch pub that's the right pub in the right location, I'd be delighted to take on another one."
The Coppertop faces fierce local competition in Falkirk, including a nearby Beefeater and a new build restaurant. But Horne says that being customer-focused and offering value is the key. "I think Punch has recognized the potential in a lot of their pubs if they can get the right people to do the job – and I think you have to do food if you want to stick around."
2 Dec 2011
UK Pubs For Sale - UK Pub Sales Agents News - England, Scotland & Wales
Pubs For Sale
Paramount Investments are London commercial property agents and valuers offering leaseholds and freehold pubs for sale in the UK. Pubs are sold for a variety of alternate uses. Some are continued as pubs and many are acquired for their development potential and diverse number of uses. The investments team can advise you in all these areas.
Paramount Magazine provides news on buying and selling freehold pubs and hotels.
Follow the links for news concerning pub trade, pubs for sale, social housing, HMOs, hostels & care homes, building & construction, London housing market, change of use, distressed properties suitable for renovation & redevelopment, planning permission
Marston’s launches drive to open more pubs - Business News - Yorkshire Post
PUB chain Marston’s is to open another 25 pubs next year as cash-strapped customers trade down from restaurant dining to a meal at their local pub.
The new outlets, which will include three in Yorkshire with one site confirmed in Cleckheaton, will create 1,000 jobs over the next year including around 100 in the Yorkshire area.
The company, which has around 200 pubs currently in Yorkshire, operates under the Pitcher & Piano and Tavern Table brands.
The trend away from restaurant to pub dining helped Marston’s full-year profit come in at the upper end of expectations.
Chief executive Ralph Findlay said customers are looking for “affordable treats”.
“The focus we’ve had on value has been one which we think is utterly crucial in this market,” he said.
“If you break out what consumers are spending on eating out, pubs are doing better than restaurants.”
Marston’s has introduced a number of offers such as two main meals for £10 and a curry with a drink for £4.95 as it looks to pull in diners.
The group reported strong food sales in Yorkshire and cited the Yorkshire Rose in Huddersfield as one of its best performing pubs in the region.
1 Dec 2011
Ex-Beautiful South singer Paul Heaton becomes a pub landlord | News | NME.COM
Paul Heaton has moved into the licensing trade after buying a pub in Salford.
The former Beautiful South singer explained he decided to snap up the Kings' Arms boozer in the north-west city after growing concerned about the "fractured" local community.
Heaton told Manchesterconfidential.co.uk that convenience was also a factor in his business decision, as he already uses the upstairs room in the pub to rehearse.
He said:
It’s a bit of a fractured community around the pub, with city centre flats on one side and Salford houses on the other, so we want to try and bring those people together a bit more.
Heaton has had to sit an exam on the licensing trade as part of the move - and isn't sure if he's passed it yet.He added that he hasn't "come into it with a business plan", but already has designs on the types of crisps he wants to sell behind the bar and the tunes that'll be played on the jukebox.
Heaton is also set to kick off his second UK tour of pubs at the venue next year.
BBC News - Greene King pub chain sees first half profits rise
Pub owner and brewer Greene King has joined its rivals in reporting higher half-yearly profits, but warns that it sees a tough year ahead.
Suffolk-based Greene King said pretax profits were up 5.6% at £77.2m, following good results from Marston's and Fuller Smith and Turner.
But Rooney Anand, Greene King's chief executive, gave a bleak assessment of the economic climate.
He said incomes were squeezed and this would not change in the near future.
Mr Anand said in this environment people were looking for "everyday indulgence", echoing Marston's chief who referred to "affordable treats".
He added: "Falling consumer confidence and the weakening of the UK economic recovery suggest that we will face another tough trading environment in 2012.
"Despite this, there are still significant opportunities for growth, and we believe our strategy to grow our retail estate and our share of the eating out market will help us to maintain our track record of strong earnings and dividends."
Greene King operates 2,400 pubs across the country as well as restaurants including the Loch Fyne seafood chain.
Its chains include Hungry Horse, Old English Inns and Bellhaven.