Enterprise rakes in £11m through auction
Enterprise Inns, based in Solihull, has auctioned off nine of its properties. The sale, at Alsop & co in London, netted the pubco £11.4m.
Enterprise said that it planned to auction off more of its taverns “over the coming months”. The properties were offered with a new 35-year lease to Enterprise Inns.
Sales achieved a multiple of 16.6 times rent, at an average yield of 6 per cent, said the company. Enterprise said that the proceeds would be used to repay debt.
In a statement, the company said: “The result of today’s auction demonstrates the continued attractiveness to investors of the Enterprise covenant, underpinned by good quality property assets. Today’s auction sales were the first of the new financial year. Enterprise retains an economic interest in these pubs through existing occupational lease arrangements, which remain unaffected by these sales.”
