London Town property developer to expand as pub company

29 November 2006 by
London Town property developer to expand as pub company

Property developer London Town has announced its intention to expand as a pub operator after completing a deal for 167 pubs from entrepreneur Jack Petchey for £94.6m.

London Town, which bought a clutch of pubs earlier in the year, plans to operate 105 of the sites as long-term trading units and will develop the remaining 62 sites, trading them normally until then.

162 sites were freehold properties, the remaining five are on long-leasehold agreements.

A LT spokesman said the group has ambitions to develop the company as a pub operator: "They like the characteristics of the sector, being strongly asset backed with good cash generation.

Anglo Irish bank is providing the group with nearly £73m of debt. The company is also being backed by an independent charitable trust, Horizon Trust, investment company Robar Limited and Incorporated Holdings, a parent company of Petchey Holdings.

Petchey, a former taxi driver turned property investor, bought 200 pubs from Punch Taverns in December 2005 for £98m.

Petchey buys 200 Punch pubs >>

Petchey supports AHG bid >>

By Emily Manson

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