Punch Taverns has sold 158 pubs it has described as 'non-core' to its business, in a bid to shrink its estate following a significant debt restructure.
London-based New River Retail, a food and retail focused real estate investment trust (REIT), has purchased the sites, the funds from which will be used to reduce Punch’s debt. The deal is expected to be finalised on September 11.
The pub company aims to sell around 200 pubs a year. It currently has around 2,900 sites as part of its core-estate, and 550 in its non-core estate.
The sites being sold generated earnings before interest and tax of £7.3m over the past 12 months, and have a current book value of £52.5m, according to Punch Taverns. It is due to issue its full-year trading statement on September 1.