Admiral Taverns, the community pub group backed by real estate private equity firm Proprium Capital Partners, has reached an agreement to acquire a portfolio of 37 freehold pubs from Fuller, Smith & Turner for £18.3 million.
The portfolio of 37 community, wet-led sites span London and the Home Counties including Surrey, Sussex and Hampshire.
The acquisition scales Admiral’s UK wide estate to over 1,420 pubs, while strengthening its presence in the South-East, taking the number of pubs in the region to over 300.
Admiral pointed to its strong track record acquiring pubs and unlocking new growth opportunities through its “operations-centric” approach.
Over the past 12 months, the group invested £39m into its wet-led community pub estate, with support from investor Proprium.
Investments have ranged from major interior and exterior refurbishments, through to innovative sustainability upgrades to many individual pubs.
Following the deal, Admiral will work with the new licensees to develop their brand range and consumer offer to people in their local neighbourhood, as well as maximise the revenue potential and grow the profitability of these pubs.
Chris Jowsey, CEO of Admiral Taverns commented: “I’m delighted to welcome our new licensees to the Admiral team, and we’re excited by the opportunity to develop these pubs in partnership together. Recent years have seen Admiral build a strong track record in delivering profitable growth across our estate, underpinned by continuous targeted investment to unlock new opportunities, supporting community pubs to thrive. These 37 pubs are an excellent acquisition for our business, increasing our reach in the South-East of the UK.”
“Despite the complexities of the macro-economic environment, across our estate we are seeing community pubs, and specifically wet-led establishments, maintaining their popularity amongst locals as people continue to enjoy going out for an affordable treat with family and friends. Wet-led, community pubs have demonstrated real resilience over recent times, and we remain optimistic that our nurturing ethos, entrepreneurial licensees and high-quality estate continues to position the Group well to be at the forefront of opportunities in our wider market.”
The cash sale proceeds of £18.3m is a premium of £1.6m to the gross asset value of £16.7m.
The portfolio of 37 pubs generated £1.3m of profit before tax for the 52 weeks to 30 March 2024.
Fuller’s said the proceeds would further strengthen the company’s balance sheet, enabling additional investment in its pubs, as well as supporting future acquisition opportunities, as appropriate.
A Fuller’s spokesperson said: “Fuller’s is committed to owning and operating both Managed and Tenanted pubs as an integral part of the Company’s future strategy. However, the Company proactively manages its pub estate, continually evaluating strategic opportunities and believes that the disposal of this portfolio to Admiral allows the company to focus on the development of its retained Managed and Tenanted estates.”
It is anticipated that the disposal will complete on 25 June 2024. Following completion, Fuller’s will have 154 pubs within its Tenanted Inns Division to complement the 179 properties in its Managed Pubs and Hotels Division.
Fuller’s was advised on the transaction by Sapient Corporate Finance.
