Enterprise in £42.6m pub sell-off
Enterprise Inns, the Solihull-based pubco, has sold 29 of its pubs for a total of £42.6m. The sell-off was agreed with MPG Pubs, a wholly-owned property vehicle of Max Property group.
The 29 properties are subject to sale and leaseback are all situated in London.
All sites will be leased back to Enterprise Inns for 35 years with minimum uplifts throughout the term, for a total cash consideration of £42.56m.
Enterprise said the sale proceeds of the pubs being disposed of are “above the total book value of £33.96m as at 30 September 2010”, prior to the leaseback agreement.
All of the properties are being held on full repairing and insuring leases with annual upward-only increases for the first five years and five-yearly increases thereafter. The initial rent roll is £2.975m per annum.
Enterprise said that the sale and leaseback agreement was in line with its stated objective “to seek efficient sources of capital, and the disposal proceeds will be used for debt repayment”.
