The first batch of sites, which comprises 15 pubs with the majority operating under the Slug & Lettuce brand, are being jointly marketed by property advisors DTZ and Fleurets on behalf of administrator Ernst & Young (E&Y).
The 15 pubs are expected to be the first of over 80, which are held in one of three companies in administration: Yates Propco Ltd, Pumpster Property Ltd and S&L Propco Ltd, to be offered to the market as investment opportunities over the next six to 12 months.
All the sites, which will be a mixture of Slug & Lettuce, Yates’s and non-branded pubs, will continue to be operated by Town & City Pub Company.
The 15 sites that are currently for sale are being marketed in two packages: a portfolio of 11 Slug & Lettuce sites and four individual units — the Red Lion in Castle Street, Luton; Yates’s in West George street, Glasgow; Yates’s in Cambridge Street, Sheffield; and Slug & Lettuce in London’s Leicester Square.
Deals
Offers in excess of £18.2m were being sought for the portfolio of 11 Slug & Lettuces however BigHospitality understands that deals on several of the individual sites are near to being agreed.
The 11 sites, which include eight based in the south east, are held on unexpired leases in excess of 18 years and have a total rent of around £1.4m per annum.
Of the four individual sites, offers in excess of £3.4m are being sought for the long leasehold investment in the Slug & Lettuce in Leicester Square; offers in excess of £1.5m for the long leasehold investment in the Yates’s in Sheffield; offers in excess of £1.65m for the freehold investment in the Yates’s in Glasgow; and offers in excess of £2.5m for the freehold investment of the Red Lion in Luton.
Pre-pack
Town & City, which currently operates a 150-strong estate, emerged with Bay Restaurants from Laurel in March 2008 after the latter went though a pre-pack administration.
Both companies bought back 293 Laurel pubs immediately after it went into administration.
Town & City recently trialled a refreshed Slug & Lettuce concept at its Chester outlet which it intends to roll out across its 75-strong estate in the near future.
Mark Wingett is associate editor of BigHospitality's sister publication, M&C Report.