Property watch
This is the second of our new series offering readers a round-up of the current state of play in the UK property market. Below, Colin Wellstead, national public houses director at property company Christie & Co, provides figures and commentary on the 1999 sales in the UK pub sector.
UK pub sales
Never since the days of the Beer Orders have so many pubs or pub operating companies changed hands. During the past 10 years, the major brewers, regional brewers and pub operating companies have been scouring the UK's high streets for suitable sites to accommodate their brands. With so much demand for too few sites, prices for city centre locations have become inflated.
Another factor that has kept the pub property market lively is the determination of the leading groups continually to upgrade and improve their pub estates, as well as to launch new concepts. This has led to the sale of a continual stream of packages of pubs which no longer fit companies' strategies, or which are unsuitable for conversion to their brands. Many a newcomer to the market has found a foothold through the purchase of these redundant outlets.
Major pub deals of 1999
VENDOR PURCHASER DEAL
Whitbread Inns Alehouse Co £23.9m for 75 pubs
Trent Taverns Inn Business £12.2m takeover of 83 outlets
Marston,Thompson Wolverhampton £289m takeover
& Evershed &Dudley
Scottish & Pub Estate Co 91 outlets
Newcastle
Century Inns Enterprise Inns £79.1m, plus debt, takeover
Allied Domecq Commer Inns £7.5m package including
28 pubs
Scottish & Royal Bank £50m for 172 pubs
Newcastle of Scotland
Charles Wells County Estate £3.25m for 31 pubs
Management
Wolverhampton Greene King £80m for 170 Marston pubs
& Dudley
Bass Enterprise Inns £69.3m, plus 20 managed
pubs, for 217 outlets
Swallow Group Pubmaster £127.5m for 662 pubs
Café Inns Jennings Bros £15m takeover of 80 outlets
Morland Greene King £182m takeover
Phoenix Inns Pennant Inns 272 pubs
Allied Domecq Punch Taverns £2.75b for 3,500 pubs
Inn Business Punch Taverns £69m takeover of 688 pubs
Daiwa Europe Cabot Square £130m for Avebury
Capital/mbo Taverns (705 pubs)
Real Leisure Pubs ‘N' Bar £4m takeover of 27 outlets
Punch Taverns Bass £886m for as many as
650 pubs
Greenalls Scottish & £1.1b for 769
Newcastle pubs/restaurants and
69 Premier Lodges
Next Property watch: 11 November
