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					AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY                                                          www.christiecorporate.com




pubfocus                                                                                 Corporate pub news from Christie + Co


“I am delighted that I have been given the opportunity to head up Christie + Co’s pubs sector
                                                                                                              Winter 2007/2008


 activity following Colin Wellstead’s retirement and I look forward to working with the exceptional
 team that we have in our Corporate Pubs division. Despite the many recent issues, the pub sector
 is generally in good shape. I am sure that Christie + Co will continue to play its part in the
 industry throughout 2008 and beyond,”
 says Director & Head of Public Houses, Neil Morgan.




Neil Morgan becomes Christie + Co’s
new Head of Public Houses                                                                                    Contents include
                                                                                                             Calco Midlands makes a Bold move         2

                                                                                                             Aprirose takes nine Revolutions          3

                                                                                                             Colin Wellstead looks back on his
                                                                                                             40 years in the industry                 4

                                                                                                             Gourmet Holdings exits via the
                                                                                                             Highwayman                               5

                                                                                                             Wishing for high street sales            7

                                                                                                             New instruction from Adnams              8

                                                                                                             Acquisitions aid Blubeckers’ expansion   9

                                                                                                             Brand new canalside pub opening          9

                                                                                                             Nightclub sold for VIP                   11

                                                                                                             Freehold prices increase as
                                                                                                             competition mounts                       12

                                                                                                             Venners helps to improve food safety     14

                                                                                                             Meet the Corporate Pubs team             16
In May this year, Colin Wellstead announced              the industry, which has been invaluable in
that, after nearly 25 years with Christie + Co,          developing Christie + Co’s position in the
he had decided to retire from the business               market and has also helped many clients to
to pursue a life of leisure in his home county           maximise value in their pub estates. After nearly
of Dorset.                                               40 years within the industry Colin is looking
                                                         forward to taking things much easier, but still
He will formally leave the business in                   retaining an interest in the licensed trade.
December 2007 and will be replaced by
Neil Morgan, who has been with Christie + Co             According to Colin, “Neil Morgan is very
since 1994 and has worked closely with Colin             well thought of within the industry and I am
throughout the majority of that period.                  delighted that he has been chosen to lead
                                                         the pubs team. I am confident in his ability to
During his time in Christie + Co, and prior              maintain Christie + Co’s position as the leading
to that, with Bass and Whitbread, Colin has              advisor to the pub industry and to take the
developed an encyclopaedic knowledge of                  business to the next level.”



                                                                                                                www.christiecorporate.com
    AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY                                                         www.christiecorporate.com




    Calco Midlands
    makes a Bold
    move
    by Noel Moffitt, Director                                                                             Market Intelligence
                                                                                                          by Neil Morgan, Director



                                                      Lease market activity
                                                      continues to increase
                                                      Following many years of merger and acquisition     The Spirit lettings project is not just remarkable
                                                      activity there has been an ongoing conversion of   because of the number of pubs involved; it has
                                                      managed houses to lease. Christie + Co has been    also significantly changed the nature of the lease
                                                      at the vanguard of this with a number of recent    market. Although lessees were accustomed to
                                                      letting projects including:                        paying premiums for lease assignments prior to
    The Railway Hotel, Atherton, Manchester                                                              the Punch Taverns project, the industry had
                                                      Punch Taverns                                      rarely sought premiums when granting new
                                                      Just 15 months after the first lease agreement     leases. Recognising the quality of the new leases
                                                      was signed, we completed the Spirit lettings       Punch Taverns was able to offer, Christie + Co
    The Bold Pub Company, and its portfolio of 30     campaign, transferring 637 former managed          recommended that premiums should be sought
    freehold properties, was recently acquired by     houses into Punch Taverns’ leased estate.          — for the first time ever.
    Calco Midlands for an undisclosed sum.
                                                      The pubs in the Spirit estate had operated as
    The Bold Pub Company was formed in 2004,          managed houses for a number of years and were
    by Ken Buckley and Phil Dearden, with the         generally of exceptionally good quality, with
    acquisition of 10 freehold pubs. Following this   average annual turnovers of between £450,000
    first acquisition, the company successfully       and £500,000. Many publicans never imagined
    developed a portfolio of 29 pub businesses,       that pubs of this quality would be available on
    most of which traded as Value Inns. We were       the lease market, so the letting campaign
    instructed by the owners of the Bold Pub          generated incredible demand.
    Company to sell the business, to enable them
    to concentrate on the development of other                                                             The Griffin at Danbury
    opportunities.
                                                                                                         Mitchells & Butlers
    The sale package included 29 managed                                                                 Earlier this year, we were also instructed by
    community pubs, located across the north                                                             Mitchells & Butlers to assist in the letting of
    of England and North Wales, together with a                                                          some existing managed pubs on their innovative
    non-trading development unit in Liverpool,                                                           franchise lease. Introduced approximately two
    which has both planning and licensing consents.                                                      years ago, the franchise lease offers sizable
                                                                                                         discounts on a range of products, with a rent
                                                        The Artichoke at Croxley Green
    We identified Calco Midlands, who own and                                                            that’s partially based on open market value and
    operate a substantial portfolio of licensed                                                          partially on turnover. Since the launch of the
    properties, as a suitable purchaser. The                                                             franchise lease, many lettings had been
    transaction was successfully completed in                                                            negotiated in-house with around 70 successfully
    August 2007.                                                                                         operating around the country. Christie + Co was
                                                                                                         asked to get involved for two reasons; firstly to




2
                                                                                                        Aprirose takes
                                                                                                        nine Revolutions
                                                                                                        by Jon Patrick, Director




help in finding further prospective franchisees     Marston’s Pub Company
and secondly to assist in raising the public        The lettings project we recently undertook for
profile of the Mitchells & Butlers franchise        Marston’s Pub Company is now largely complete.
lease opportunity.                                  The 15 sites we were instructed to offer included
                                                    part of the former Eldridge Pope estate and the
The launch of our marketing campaign, which         majority of deals have now concluded, with all
promoted the availability of 17 pubs as new M&B     achieving the quoted premiums and rents. At the     Christie + Co recently acquired nine freehold
franchise lease opportunities, coincided with the   time of going to press, only two sites remain and   Revolution vodka bars on behalf of the specialist
Easter holiday. The brochure we prepared not        we have been instructed to add further pubs to      property investor Aprirose, in a deal worth in
only outlined the businesses on offer but also      the letting programme.                              excess of £17 million.
gave an insight into the franchise lease and its
undoubted benefits, complete with testimonials                                                          Inventive Leisure, which operates the 50-strong
from existing franchisees. The pubs were widely                                                         Revolution brand, signed 25-year leases on the
spread around the UK and were all managed                                                               properties, on an initial yield of about 6%. With
houses with an established trade, some having                                                           the completion of this deal, the Inventive
been former branded operations. This meant                                                              property portfolio will become 100% leasehold.
interest was received from a wide range of
buyers, including a number of multiple operators,                                                       Aprirose is a low-profile investor in UK property,
who could see the benefit of trading such high                                                          with a £300m portfolio that includes a clutch of
profile sites, which rarely come to the market.                                                         assets in the leisure market, comprising hotels,
                                                      The Devil’s Punchbowl in Hindhead                 pubs and restaurants.
At the time of going to press the majority of
properties we were originally instructed to offer   Having witnessed the success of the Punch           The nine Revolution properties are located in:
have been let, with only two still available.       Taverns project and other recent Christie + Co      Huddersfield, Lancaster, Leicester, Lincoln,
However, due to the success of the original         letting assignments, many other pub companies       Liverpool, Newcastle-under-Lyme and
campaign, we have received further letting          and brewers have chosen to let public houses        Wolverhampton, plus two in Manchester.
instructions and are currently marketing a          that were formerly managed and we don’t doubt
number of new opportunities.                        that they will continue to do so.                   The Inventive sale and leaseback portfolio
                                                                                                        comprised over 80,000 sq ft of good quality
                                                    We can expect to see an increasing number           real estate, with rental levels set at a realistic
                                                    of high quality pubs available on lease, but        proportion of profits. This should enable
                                                    there’s fortunately no shortage of capable and      Inventive to maintain investment in the units
                                                    entrepreneurial lessees to rise to the challenge.   in the future.




  The Percy Hobbs at Winchester

                                                                                                                                                             3
    AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY




    Caring owner
    found for former
    nightclub
    by Colin Wellstead, Director




                                                          All change!
                                                          Colin Wellstead looks back on his
    The Pantiles in Bagshot was one of the South          When I first joined Whitbread in 1968, lager was   Looking back one of the first major corporate
    East’s leading nightclub venues, which operated       only for the very exotic-minded and the bars       projects I was involved in at Christie + Co was
    successfully for almost 40 years in the same          were filled with draught bitter, which was often   the sell-off of the “rump” of the Berni Inn estate,
    ownership until it finally closed its doors earlier   served straight from the barrel. Bottled beers     following its acquisition by Whitbread in 1990.
    this year.                                            were pint-sized, compared to today’s “stubby”      The Berni Inn steakhouse had been around since
                                                          and they were filled with either Light or Brown    the 1950s and the sale of the iconic Berni Inn
    Christie + Co’s association with the Pantiles         Ale, or even Mackeson (milk stout).                brand came at a time when the UK’s casual
    began some eight years ago, when the directors                                                           diners had started becoming more discerning.
    first considered retiring. A decision was finally     The food in those early days was also a far
    made to sell the business just over a year ago        cry from today’s gastronomic pub dining            Another key project, which immediately springs
    and we were instructed to find a suitable buyer.      experience. The menu consisted of a dusty          to mind, was the acquisition of a greenfield site
    With all the changes that have taken place in the     pie or a curled sandwich, which had been           for Derek Mapp, the founder of Tom Cobleigh.
    late night market, we considered it worthwhile to     made many hours before and was proudly             This, which I acquired in 1992, became one of
    seek an alternative use for the 1.65 acre site,       displayed in a glass dome complete with            the first of a new breed of modern purpose-built
    whilst also looking for a night club/bar operator.    the odd fly – dead or alive!                       family pubs, which provided drinks, food and
                                                                                                             children’s entertainment.
    Our marketing campaign generated considerable         How times have changed! We’ve had years
    interest and prompted offers from a range of          of exciting merger and acquisition activity,       I have also been fortunate to work with some
    potential buyers within the healthcare,               with groups of pubs changing hands and pub         very interesting characters over the years. In
    residential, retail and hospitality sectors.          companies offering an increasing range of          1995, we started working with Guy Hands of
                                                          products to appeal to an ever-widening customer    Nomura, whose bright young team included a
    A deal was agreed with Sunrise Senior Living for      base. The changes in food offerings have been      27-year-old Giles Thorley. We initially worked on
    a figure significantly in excess of the £4 million    amazing, with lots of pubs now serving a           the Nomura Principal Finance Group’s acquisition
    asking price. Having submitted a planning             fantastic variety of high quality dishes.          of Phoenix Inns, followed by Spring Inns,
    application in March 2007, Sunrise secured                                                               Inntrepreneur, InnPartnership and Voyager. We
    consent in July 2007 to enable the development        When I first joined Christie + Co nearly 25        also worked with them on their exit from the
    of 78 assisted living units for the elderly. The      years ago, leases were unheard of and I was        market, with the sale of the Unique Pub Group
    redevelopment commenced in November 2007.             selling freehold pubs in the Yorkshire Dales for   and the Voyager Pub Group to a consortium that
                                                          about £100,000! Now it’s more common to sell       included Enterprise Inns in March 2002.
    I have been involved with the site for the last       freehold pubs over the £1 million mark and
    eight years and I am delighted that we achieved       licensees are happy to pay £100,000 or more
    such a successful outcome. I wish the directors       for a quality lease.
    the same long and enjoyable retirement that I
    hope to enjoy myself!




4
                                                                                                                                Gourmet
                                                                                                                                Holdings exits
                                                                                                                                via the
                                                                                                                                Highwayman
                                                                                                                                by Simon Chaplin, Director




40 years in the industry
 As well as working with some of the individual
 rising stars, I have also watched the growth of
 some of the industry’s biggest company names.
 Christie + Co worked as valuers for JD
 Wetherspoon in the mid to late ‘90s when the
 company was in its initial development stage.
 At that time, we valued many former high street
 banks and post offices, which Wetherspoon had
 recently converted. I believe this concept has
                                                                                             o           2
 really stood the test of time, unlike many others.                                        +C                                   Gourmet Holdings recently exited from the
                                                                                                         5y
                                                                                         tie




                                                                                                                                pub sector with the sale of the Highwayman
                                                                                                           ears
                                                                            rs with Chris




 Most recently, we worked with Punch Taverns                                                                                    freehouse in Checkendon
 on the acquisition of Pubmaster and the Spirit
                                                                                                                with Chris




 Group, which resulted in the subsequent letting                                                                                Christie + Co acted on behalf of Gourmet
 of 637 pubs in a 15-month period.                                                                                              Holdings in the sale of the country pub and
                                                                                                                                restaurant, which dates back to 1610 and stands
                                                                         yea



                                                                                                                          tie




 There have been many other highlights during                                                      +C                           alongside the main A4074 Wallingford to
                                                                       5




 my 40 years in the industry, which are too                                             2            o                          Reading road near the South Oxfordshire
 numerous to mention, together with the odd                                                                                     border. The property was acquired by
 low spot here and there! I have been very                                                                                      experienced operator Ken O’Shea, who runs
 privileged to work with a significant number                                                                                   another successful pub business in Hampshire.
 of clients over many years, as a member
                                                                    the days
                                                                ere
 of the best team in the industry!                                                                                              Having sold the Bel & The Dragon Group for
                                                                                                                                more than £8 million to Ultimate Leisure in
                                                         those w




                                                                                                                                the summer, Gourmet Holdings has now
                                                                                               •
                                                                                               •




                                                                                                                                disposed of all its pub businesses in order
                                                                                                                                to focus on developing the French brasserie
                                                                                               those w




                                       Colin W                                                                                  concept — Richoux.
                                              ellstead
                                                            •
                         68




                                                                   ere
                       19




                                                                       the dayss
                                                                        he day
                                                                        h day
                                                                        h day
                                                         2007




                            GIV
                               E IT
                                      SOM
                                         E WEL
                                              LIE




                                                                                                                                                                                  5
    AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY




                                                                                                                       Market Intelligence
                                                                                                                       by James Shorthouse, Director
    The Albion House Tavern in St Peter Port, Guernsey




    Island hoppers
    by James Shorthouse, Director
                                                             Challenging times
    CI Traders, the Channel Islands-based                    The pub industry has faced a number of external     There was some good news for those selling land
    conglomerate, which includes pub, bar and                challenges over the last few months, some of        for development – the Government’s proposals
    restaurant operations, was recently acquired             which have affected the day-to-day operation        for a Development Land Tax, which would
    in a £260 million transaction.                           of pubs, and others have affected the buying        become payable when planning permission was
                                                             and selling of businesses.                          granted, have been dropped. They are to be
    Duke Street Capital, the independent private                                                                 replaced by a planning charge, which will be
    equity fund manager, and Europa Capital, the             The highest profile change has, of course, been     calculated as a set amount per dwelling, or per
    European real estate fund manager, completed             the introduction of a ban on smoking in enclosed    square metre of floorspace, similar to the system
    the acquisition through Sandpiper, a newly               public spaces, which includes all pubs, bars and    which is already in operation in a few areas.
    incorporated Jersey-based company. Christie + Co         restaurants. The whole of the UK is now covered
    advised Sandpiper in the successful formulation of       by a smoking ban and there is no doubt that it is   The summer’s “credit crunch” has also had
    a bid for the company, by providing valuation            forcing operators to target new markets including   an effect on the sector. Large corporate deals
    advice relating to CI Traders’ hospitality businesses.   families and, in many cases, introduce or expand    (over £100m) have been directly affected,
                                                             their food offer.                                   with difficulties in securing large tranches of
    CI Traders is the Channel Islands’ largest operator                                                          debt for takeovers and refinancing. The high
    of consumer and leisure sector businesses and            The ban will inevitably lead to the closure of      profile proposed deal between M&B and
    comprises five business segments, namely Retail,         pubs which are not able, or whose operators         Robert Tchenguiz has been postponed, and there
    Hospitality, Wholesale, Manufacturing and                are unwilling, to adapt to the new regulations.     are undoubtedly other transactions which have
    Property. Within these business segments, the            For the majority however, we believe that any       been delayed until the debt markets reopen.
    Ann Street Group of companies operates more              drop in beer volumes will be short-term and that
    than 65 public houses and restaurants.                   many businesses will benefit from the move away On an individual pub level however, our sister
                                                             from the smoky, male dominated environment        company Christie Finance reports that banks are
                                                             with which they were previously associated.       still keen to lend into the sector and that finance
                                                                                                               is still available to good quality buyers.
                                                             In his recent Pre-Budget Report, Alastair Darling
                                                             announced proposed changes to the Capital
                                                             Gains Tax system, which will lead to an 80%
                                                             increase in the tax paid by the vendors of a
                                                             business. A number of organisations are
                                                             applying pressure on the Chancellor to persuade
      The Deerhound Inn on Guernsey                          him to change this proposal but, if the changes
                                                             are implemented, then the retirement plans of
    Our Valuation Services team did some                     many pub and bar owners will be impacted
    considerable island hopping in the preparation           after April 2008.
    of the valuation report, visiting businesses in
    Jersey, Guernsey and Alderney.




6
                                 Wishing for high
                                 street sales
                                 by Neil Morgan, Director



                                 Three Wishes has recently put five high street
                                 pub and bar businesses on the market. The
                                 properties, which are offered for sale on an
                                 individual basis or as a group, are all located
                                 in London and the South East.

                                 The portfolio comprises: The Misty Moon
                                 bars in Barnet, Bethnal Green and Harlesdon,
                                 the Wernham Hoggs in Slough and the
                                 Windmill in Sydenham.

                                 Currently operated as managed houses, the
                                 properties are offered to the lease market on
                                 a free-of-tie basis with remaining lease terms
                                 ranging from 10 to 27 years. Although the bars
                                 are predominantly wet-led operations, they
                                 offer scope to develop the dining trade and
                                 they all have ample external areas, suitable
                                 for the provision of smoking solutions.




                                   Wernham Hoggs in Slough




The Brewery marketing brochure


                                                                                   7
    AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY




                                                       Business reviews prompt
                                                       freehold disposals
                                                       by Simon Chaplin, Director

                                                       Although pub companies are competing                We are also currently marketing four freehold
                                                       aggressively for freehold acquisition               pubs in the South West of England on behalf of
                                                       opportunities, they continue to review and          The Heavitree Brewery. Having sold the Royal
                                                       churn their estates — disposing of packages         Standard at Shaldon and the Judge Jefferies in
                                                       of pubs in order to focus on the development        Exeter, we’re currently looking for suitable
                                                       of other parts of their businesses.                 buyers for the Pen & Quill in Taunton, the

    New instruction                                    One of our most recent portfolio disposal
                                                                                                           Wonford Inn near Heavitree, the Heavitree Arms
                                                                                                           in Newton Abbot and the Windsor Castle Inn in
                                                       projects has come from the Directors of Pubfolio,   Heavitree. Asking prices range from £325,000
    from Adnams                                        who have decided to rationalise a number of
                                                       sites that are no longer trading. We have been
                                                                                                           for the Windsor Castle, up to £650,000 for the
                                                                                                           Pen & Quill.
    by Anthony Jenkins,                                instructed to offer 27 freehold properties to
                                                       the market, for sale individually or as a group,
    Associate Director                                 with asking prices ranging between £175,000
                                                       and £395,000.

                                                       The pubs are widely located across England and
                                                       Wales and although many of them are likely to
    Christie + Co has been instructed to market        recommence trading as licensed businesses under
    a portfolio of nine pubs in Suffolk, Essex         new ownership, others are expected to attract
    and Norfolk on behalf of Adnams.                   interest from developers seeking to convert them
                                                       to residential or retail use.
    Adnams owns a portfolio of 80 pubs in East
    Anglia and the company continually strives to
                                                                                                             The Pen & Quill in Taunton
    improve the quality of its estate, developing
    pubs that focus on cask beer and good food.
    During a recent review, nine pubs were                                                                 As a result of all the merger and acquisition
    identified as suitable for disposal.                                                                   activity that has taken place in recent years,
                                                                                                           freehold disposal instructions are becoming
    Adnams’ Director of Retail, Rupert Farquharson                                                         less frequent, whilst new letting campaigns
    explains, “Our strategy at Adnams is to develop                                                        are becoming increasingly common. Fortunately,
    a pub estate that reflects the underlying values                                                       the corporate pubs team has acquired
    of the Adnams brand. The combination of great                                                          considerable experience in both the selling
    beer, wine and food is something in which                                                              and letting of pubs and, through our extensive
    Adnams specialises. We are working closely           The Castle Inn at Cross Keys, Newport             network of UK offices, we’re able to respond
    with our tenants to develop strong, sustainable                                                        effectively to projects of all sizes.
    businesses best placed to serve today’s
    consumers. The small number of pubs we
    are putting on the market will be ideal for
    other pub operators.”
                                                       STOP PRESS! STOP PRESS! STOP PRESS! STOP PRESS! STOP PRESS! STOP PRESS! STOP PRE
    Opportunities to acquire pubs of this
    quality are rare and the portfolio is likely
    to appeal to a large number of pub operating
    companies, breweries and other retailers.          Enterprise Inns instruction
    Our initial marketing has already generated
    considerable interest.                             At the time of going to press, we received news
                                                       of an exciting multiple disposal instruction from
                                                       Enterprise Inns. Full details of this disposal
                                                       project will be released in due course.

8
                                                                                                             Brand new
                                                                                                             canalside pub
                                                                                                             opening
                                                                                                             by Simon Chaplin, Director



       Acquisitions aid Blubeckers’                                                                          There’s always plenty of talk about pub closures
                                                                                                             in the UK press so it gives me pleasure to share
       expansion by Neil Morgan, Director                                                                    some news of a brand new pub opening in a
                                                                                                             prime waterside location!

                                                                                                             Christie + Co recently received an instruction
       Blubeckers, the pub restaurant division of         The former Chef and Brewer branded Refectory       from Marston’s Pub Company to find a lessee for
       The Restaurant Group, has recently expanded        has also been in great demand. It was              the Hourglass pub on Devizes Marina. Situated
       its estate by securing leases on the Refectory     successfully let to Gusto Inns by Christie + Co    on the Kennet and Avon Canal in Wiltshire, the
       public house in Milford, near Godalming and        last year on behalf of Punch Taverns but we        brand new pub development has more than 2,000
       the Duke of York in Barnet.                        were subsequently instructed to acquire the        square feet of trading space and offers great
                                                          business on behalf of Blubeckers, who made         views of the canal.
       Renowned for offering good quality food            an offer that was too good to refuse!
       in relaxed, character-driven surroundings,                                                            As you can imagine, brand new public houses
       Blubeckers opened its first outlet in Shepperton   Both pubs are located in affluent trading areas.   available on lease, such as the Hourglass, are
       in 1977. The company was acquired by The           The Duke of York has already undergone an          incredibly rare. The two-storey property has
       Restaurant Group in June 2005 and has since        extensive refurbishment programme and the          a large lounge bar and restaurant, a first floor
       grown to operate over 20 pub restaurant            Refectory is due to be refurbished shortly.        function room, two bedroom owner’s
       businesses throughout the Home Counties.           We continue to work with Blubeckers to             accommodation and a canalside patio.
                                                          identify further acquisition opportunities
       The Duke of York public house in Barnet is a       as they roll out this high quality brand.          We are delighted that Marston’s recognised the
       former Beefeater Restaurant, which we were                                                            benefits of offering a new lease on the property
       instructed to offer on behalf of Herald Inns                                                          and instructed us to find a lessee, rather than
       & Bars. The new lease attracted considerable                                                          choosing to operate it as a managed house.
       interest from a variety of potential buyers,
       prompting competitive bidding. It was                                                                 The pub has been acquired by Chris Long, who
       eventually secured by Blubeckers for a                                                                is from the Melksham area and, with 25 years’
       premium close to £300,000.                                                                            experience in the licensed trade, is looking
                                                                                                             forward to developing the new business.




ESS!




                                                                                                               A computer-generated illustration of the Hourglass




                                                                                                                                                                    9
     AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY




     Ipanema sold                                                                                            Market Intelligence
     by Noel Moffitt, Director                                                                               by Neil Morgan, Director




                                                         Room at the inn?
                                                         Pub operators are always looking for alternative   A number of pub companies have recognised
                                                         income streams, which can make a significant       the potential of letting bedrooms and have built
                                                         contribution to the bottom line. The addition of   up portfolios of pubs offering accommodation.
                                                         letting rooms can increase the operating profit    Eldridge Pope, which was taken private by
                                                         for a managed house and also allow pub             Michael Cannon in 2004 and subsequently
                                                         companies to charge more rent on a leased          acquired by Marston’s in 2007, has championed
                                                         pub, whilst leaving the lessee with an enhanced    letting rooms. By 2005, the company had
                                                         retained profit.                                   amassed some 500 letting bedrooms in an estate
                                                                                                            of 25 pubs and coaching inns across southern
     After a record period of marketing, Christie + Co   Pubs have provided accommodation since the         England. Eldridge Pope’s “Room at the Inn”
     has finally assigned the leasehold interest in      days of the coaching inn, which offered lodgings   accommodation brand was launched in the
     Ipanema on Broad Street, Birmingham. The            to stage coach passengers and stabling for the     summer of that year, offering a central
     Ipanema bar and restaurant was opened a             horses. Unsurprisingly, the hotel market has       reservations number and online booking facility.
     number of years ago as a very successful salsa      evolved significantly since the 1800s and, like
     dancing venue by Whitbread — which was then         the public house industry, has undergone
     a major pub owner.                                  significant change over the last 10-15 years.

     At the time of its opening, Ipanema occupied        The budget hotel sector is by far the industry’s
     a highly sought-after location within               fastest growing and the UK’s three largest
     Birmingham’s premium bar “strip”. The whole         hotel companies — Whitbread (Premier Inn),
     Broad Street area has since gone through a          InterContinental (Express by Holiday Inn),
     period of consolidation with a number of bars       and Travelodge — all operate within the
     struggling to trade successfully.                   budget market.
                                                                                                              The Kilkeney Inn at Andoversford

     We are delighted to have finally sold Ipanema       Today’s business and leisure travellers are
     to local Birmingham operators, who are looking      keen to secure competitive room rates, but         Greene King and Brakspear were also ahead of
     forward to refurbishing and re-launching the        they also tend to reject “standard”                the accommodation game. Greene King acquired
     venue. We wish them every success and hope          accommodation in favour of establishments          Old English Inns in September 2001 and now
     the new business will generate excellent trade.     that offer a bit of individuality. Many public     operates more than 70 inns and hotels across
                                                         houses can respond to these travellers’ demands    the country. Brakspear has an estate of almost
                                                         by offering affordable accommodation in letting    30 pubs offering “Room for a Night”, which
                                                         rooms with a bit of character.                     are predominantly located in Berkshire,
                                                                                                            Buckinghamshire and Oxfordshire, in areas
                                                                                                            of high demand.




10
                                                                                                        Nightclub sold
                                                                                                        for VIP
                                                                                                        by Anthony Jenkins,
                                                                                                        Associate Director
                                                       The Hand & Flowers in Marlow




Other pub companies/breweries, such as Charles       Not all pubs can live up to Tom Kerridge’s
Wells, which sold off its hotel portfolio in the     exceptional standards, but many diners seek
‘90s, have chosen to re-enter the accommodation      good value overnight accommodation, which
market. Charles Wells acquired a portfolio of        enables them to make the most of the pub dining
10 freehold pubs from Traditional Freehouses,        experience and the fine selection of beverages!
through Christie + Co at the beginning of 2007.      Where it’s not possible to develop letting
The fact that five of the pubs offer letting rooms   bedrooms on the pub premises, a number of
was highlighted by Charles Wells as one of the       operators are purchasing neighbouring properties   Christie + Co recently sold the top Peterborough
prime motivators behind the acquisition, and the     for conversion into guest accommodation.           nightclub, Faith & Fusion, on behalf of VIP
company is looking to expand accommodation                                                              Leisure. We sought offers in the region of £1.6
provision across its existing estate to stimulate                                                       million for the freehold city centre property,
business development.                                                                                   which was acquired by Matterhorn Capital.

Improvements in the quality of pub food are                                                             Located close to the Westgate Shopping Centre
also having a positive impact on the desirability                                                       and the railway and bus stations, the club is
of letting rooms. A number of the top end                                                               licensed to 6.00am with the capacity to
gastro pubs are now providing overnight                                                                 accommodate 900 people. It had been in VIP
accommodation for the benefit of their diners.                                                          Leisure ownership for five years and has been
The Hand & Flowers pub restaurant in Marlow                                                             the subject of significant ongoing investment,
                                                       Peacock Inn, Redmile
won its first Michelin star within 10 months                                                            including the creation of the self-contained
of opening and received the Christie + Co                                                               ‘Fusion’ club last year.
sponsored Newcomer Award at the The Catey’s          For individual purchasers, a small number of
in 2007. Chef proprietor Tom Kerridge is             letting rooms can generate significant profit      The recent sale of this major club in a developing
currently developing a neighbouring cottage          for limited outlay, which is also likely to be     part of the city is reassuring for the late night
in order to offer his diners overnight               reflected in the sale price achieved when the      sector. Following on from the new licensing
accommodation.                                       property changes hands.                            regime and July’s smoking ban the industry was
                                                                                                        in a period of transition. However, this sale backs
                                                                                                        up the stance that acquisitive companies have
                                                                                                        made – that is it is business as usual in the club
                                                                                                        industry. We have a number of clients, both
                                                                                                        regionally and nationally, looking for suitable
                                                                                                        locations and businesses.




                                                                                                                                                              11
     AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY




                                                          Freehold prices increase
                                                          as competition mounts
                                                          by Neil Morgan, Director


     Waterside                                            With acquisitive pub companies knocking at
                                                          our door, our network of 17 offices has proven
                                                          to be an invaluable source of local knowledge.
                                                                                                              The Pullman Inn & Restaurant



     bar sold                                             We choose to employ pub sector specialists
                                                          in each and every one of our offices and, by
     by Noel Moffitt, Director                            having this dedicated local presence, we’re
                                                          able to familiarise ourselves with almost all
                                                          the pub businesses across our areas of operation
     We recently acted for Marston’s in the               in the UK. This means that we’re generally
     confidential sale of the Pitcher & Piano in          aware of a freehouse owner’s plans to retire,
     Manchester. The business occupies a prime            or exit the market. We are also familiar with       We were instructed to sell the Pullman Inn
     location in one of Manchester’s main office          the local and national pub companies’ acquisition   & Restaurant on behalf of the Miles family,
     districts, overlooking the Bridgewater Canal.        criteria and can therefore introduce the most       who had owned it for 15 years. Set within the old
                                                          relevant opportunities in locations we know         Widmerpool Railway Station in Nottinghamshire,
     Marston’s decision to sell the business followed a   they are targeting.                                 the food-led freehouse business was marketed
     number of high profile group acquisitions, which                                                         at £1.6 million and was acquired by Steve
     led to a rationalisation of part of the company’s    A large number of the quality freehouses we’re      Frangos and Mike Holton, as the first acquisition
     managed estate.                                      instructed to sell are acquired by pub companies    for their newly-formed pub company — Old
                                                          rather than individuals and record prices have      English Taverns.
     The ground floor Pitcher & Piano premises has a      recently been paid for some of the finest
     popular external seating area alongside the canal    freehold assets. Some of our recent freehold        The Bull Hotel, Salisbury
     and is conveniently close to the G-Mex Centre        sales include:
     and the Deansgate shopping centre. The lease
     was successfully assigned to a local businessman.




                                                                                                              We received an instruction to sell the Bull
                                                                                                              Hotel in Salisbury when the Hopback Brewery
                                                                                                              decided to sell the business in order to focus
                                                                                                              on expanding its wet-led tenanted estate.
                                                                                                              The substantial prime-sited business attracted
                                                                                                              considerable interest from a number of pub
                                                                                                              companies before it sold to Marston’s
                                                                                                              for £825,000.




12
The New Inn Hotel, Clapham                         Rose & Crown, Limpley Stoke




We sold the New Inn Hotel, in the Yorkshire        The characterful Rose & Crown was discreetly
Dales National Park, on behalf of Mr & Mrs Keith
Mannion who had operated the successful pub,
hotel and dining business for 19 years. The
                                                   put on the market by Christie + Co when the
                                                   private owner decided to emigrate to Canada
                                                   and specified a confidential sale. Enterprise Inns
                                                                                                        Deal is sealed
business was offered to the market for £1.5
million and was acquired by Enterprise Inns.
“The New Inn is a quality operation,” says
                                                   acquired the canalside property off an asking
                                                   price of £995,000.                                   on former Post
Enterprise Inns’ Senior Acquisition &
Development Manager, Richard Broadribb.
                                                   The King’s Head, Ormesby
                                                                                                        Office
“We were delighted to have the opportunity
to buy this site and appreciate the professional
                                                                                                        by Noel Moffitt, Director
approach adopted by Christie + Co throughout
the transation.”
                                                                                                        A former Post Office building in Solihull has
The Malt Shovel Inn, Cannington                                                                         recently been acquired by JD Wetherspoon.
                                                                                                        The leasehold Bar Censsa business, which
                                                                                                        occupies a prime trading position within the
                                                                                                        town centre, was formerly operated by the Spirit
                                                   We were instructed to sell the King’s Head,          Group prior to its acquisition by the Tattershall
                                                   near Great Yarmouth, when Tina and Dale              Castle Group (TCG), as part of a portfolio of
                                                   Cropley chose to retire from the licensed trade.     178 bars and nightclubs it purchased in
                                                   The Norfolk pub was sold to Enterprise Inns off      November 2005.
                                                   an asking price of £395,000.
                                                                                                        Christie + Co acted for TCG in the sale of the
                                                   The Inn on the Chase, Cashmoor                       attractive three-storey red brick property.
The Malt Shovel was put on the market at a                                                              Following an extensive refurbishment, the site
guide price of £695,000 on behalf of owner-                                                             is due to reopen in January 2008 as a Lloyds
operators Tracy Twine and Malcolm Cridland.                                                             No.1 bar called the Assembly Rooms.
The Somerset pub was sold to the Butcombe
Brewery, who completed the deal just eight
weeks after it was put on the market.

The Hunters Moon, Middlemarsh


                                                   We were instructed to sell the Inn on the Chase,
                                                   near Blandford Forum in Dorset, when Peter
                                                   and Nick Gregory decided to pursue other
                                                   business interests. The destination food venue,
                                                   which has a 50-cover restaurant, was acquired
                                                   by Marston’s.



The beautifully refurbished 18th Century Hunters
Moon was sold off an asking price of £895,000
on behalf of Brendan Malone. Enterprise Inns
acquired the Dorset pub, which stands alongside
the A352 Dorchester to Sherborne Road.




                                                                                                                                                            13
     AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY




     Rock-inn
     rolls in!
     by Anthony Jenkins,
     Associate Director




       The Star Inn at Woodstock, Oxfordshire
                                                      Venners helps to improve
     Three new lease opportunities from Punch
                                                      food safety
     Taverns proved suitably tempting for the
     Rock-Inn Pub Company.
                                                      by Trevor Heyburn, Managing Director of Venners, a Christie Group company
     New leases on the Star Inn in at Woodstock
     in Oxfordshire, the Fish Inn in Northampton      In today’s environment food safety is paramount       Even after businesses have adopted what they
     town centre and the Squirrels in Duston,         so it’s important for pub operators to question       consider to be “best practice” it is still difficult
     Northamptonshire have all been acquired by       “What is the standard?” Pub companies and their       to be sure that the food operation is safe and
     the Bedford-based pub company through            staff need to be fully aware of what is expected      that pubs are operating to the required standard.
     Christie + Co.                                   before they begin cooking and preparing food          A Food Safety Audit will often emulate an EHO
                                                      that will be consumed by the public. If a pub         inspection and will:
                                                      owner doesn’t know what the standards are, then
                                                      he or she may never know whether or not they          +   Check the quality of products from suppliers
                                                      are being achieved. If they get it wrong, the         +   Carry out an in-depth audit of food storage
                                                      results are potentially disastrous and may even       +   Test preparation areas for harmful bacteria
                                                      lead to a business being shut down.                   +   Carry out a comprehensive audit of all food
                                                                                                                production and service areas
                                                      Venners is a member of Christie Group and, in         +   Take an in-depth look at the cleanliness
                                                      addition to our renowned stocktaking services,            and COSHH needs of food premises
                                                      we are also able to offer food safety audits to       +   Provide a detailed analysis of food safety
                                                      help pub companies ensure that food safety is             procedures
       The Fish Inn, Northampton town centre          taken seriously within their individual businesses.   +   Provide an analysis of food safety training
                                                                                                                needs
     We were delighted to negotiate the sale of       Good practice should be the minimum aim,              +   Review the current legislative position
     brand new leases on these three public houses    and having a Venners Food Safety Audit helps              and recommend corrective action
     to the expanding pub company, which is headed    companies to:                                         +   Provide help with SFBB (Safer Food Better
     by the vastly experienced James Maddison and                                                               Business)
     Mark Manning. These three quality sites are      +   Comply with all new regulations                   +   Provide help with HACCP (Hazard Analysis
     ideal additions to their expanding group of      +   Demonstrate how to make food safely                   of Critical Control Points)
     pubs within the northern home counties.          +   Train staff in handling food safely               +   Offer help and back-up at any time
                                                      +   Maintain and protect the business’s reputation    +   Provide possible liaison with local authorities
                                                      +   Improve profit                                        on your behalf

                                                                                                            Further information can be obtained from our
                                                                                                            website: www.venners.co.uk.




       The Squirrels in Duston, Northamptonshire

14
                                                                                                        Financial
                                                                                                        solutions from
                                                                                                        CCF
                                                                                                        by Mark Stevens, Managing Director,
                                                                                                        Christie Corporate Finance

                                                                                                        Christie Finance offers business mortgage
                                                                                                        solutions to the leisure, hospitality, care and
                                                                                                        retail sectors. The company was established
                                                                                                        in 1977 and, like Christie + Co, is a member
                                                                                                        of Christie Group.

Freehold acquisitions
prompt lettings by Simon Chaplin, Director
Enterprise Inns is always keen to expand its
estate by picking up quality freehold businesses.
The company has successfully acquired a large
number of freehouses through Christie + Co in
recent months and we’ve recently been instructed
to offer new leases on a number of businesses.                                                          As part of the company’s re-brand in March
                                                                                                        2007, a new corporate division — Christie
                                                                                                        Corporate Finance (CCF) — was established
                                                                                                        to offer more varied funding solutions, tailored
                                                                                                        to the needs of corporate clients.
                                                       The Hop Leaf in Basingstoke town centre
                                                                                                        Our finance specialists have extensive experience
                                                     The pubs we’re currently marketing on Enterprise   in the provision of corporate finance. They work
                                                     Inns’ behalf include the Compasses Inn near        closely with their colleagues at Christie + Co,
                                                     Fordingbridge in Hampshire; the Swan Inn at        across all six trading sectors, to provide a range
                                                     Stoford, which sits on the River Wylye near        of innovative funding solutions to meet the
                                                     Salisbury; the newly-refurbished Hop Leaf in       specific requirements of our major clients.
  Compasses Inn near Fordingbridge in Hampshire
                                                     Basingstoke town centre; and the Mortimer Arms
                                                     near Romsey.                                       In addition to providing senior debt options, CCF
Enterprise Inns has one of the industry’s largest                                                       has developed an excellent reputation with all of
leased and tenanted estates, with more than                                                             the major banks and key investors, enabling its
7,000 pubs across England and Wales. The                                                                intermediaries to advise on more complex equity
strength of the lease market and the enthusiasm                                                         and mezzanine funding options.
of potential lessees enable Enterprise to make
freehold acquisitions with confidence — knowing                                                         For more information about the services we offer,
that the pubs they add to their estate will be let                                                      please contact me on 020 7227 0768 or e-mail
successfully.                                                                                           me: mark.stevens@christiecf.com



                                                       The Mortimer Arms near Romsey




  The Swan Inn at Stoford

                                                                                                                                                             15
 AGENCY | VALUATION SERVICES | INVESTMENT | CONSULTANCY                                                                      www.christiecorporate.com




Meet our Corporate Pubs team


                              Neil Morgan has been involved in the property market since 1982 and joined Christie + Co in 1994. After five
                              years running the Winchester Office, Neil moved to London in April 2004 to concentrate on expanding our
                              corporate client base. Neil worked alongside Colin Wellstead on the Punch Taverns letting project and he
                              has been instrumental in the development of Christie + Co’s expanding corporate lettings business, as well
                              as overseeing some significant disposal instructions. Following Colin Wellstead’s decision to retire, he was
                              appointed as Christie + Co’s new Head of Pubs in September 2007. neil.morgan@christie.com




                              James Shorthouse qualified as a Chartered Surveyor in 1991, which was also the year in which he joined
                              Christie + Co. A Director of Christie + Co, James is the Head of Valuation and Advisory Services with
                              responsibility for both the pub and restaurant sectors. His team specialises in the valuation of portfolios
                              and high value single assets. james.shorthouse@christie.com




            Darren Bond is a qualified Chartered Surveyor and a Director                    Simon Chaplin is responsible for Corporate Pubs in Christie + Co’s
            of Valuation Services at Christie + Co. He joined Christie + Co’s               Southern areas. He has more than 20 years’ experience in the
            Birmingham office as a valuer in 2001 and worked as Valuation                   public houses sector and, having worked in various Christie + Co
            Services Manager and Location Manager of the Leeds Office                       offices over the years, was made a Director of the company
before making the move to London in 2007 to take up the position of                         in 2005. simon.chaplin@christie.com
Head of Valuation Services. darren.bond@christie.com
                                                                                            Anthony Jenkins is responsible for managing relationships with
             Norman Cockburn has been involved with the valuation of                        Christie + Co’s corporate clients in the Midlands and East
             restaurants and licensed properties since he qualified as a                    Anglia. He has more than 20 years’ experience in the licensed
             Chartered Surveyor in 1972. He joined Christie + Co in 1987                    property sector and was made an Associate Director of
             and was appointed a Director in June 1994. Norman is                           Christie + Co in 2006. anthony.jenkins@christie.com
considered to be the most experienced Chartered Surveyor specialising
in the leisure industry in Scotland. norman.cockburn@christie.com                           Jon Patrick joined Christie + Co in 1984 and has extensive
                                                                                            experience of the sale and valuation of leisure businesses,
            Noel Moffitt is a Chartered Surveyor, who has been involved                     together with the development of leisure and hospitality
            with public house valuations and transactions since 1996. He                    property involving both solus and mixed-use schemes.
            is a Director of Christie + Co with responsibility for Corporate    A Director of Christie + Co, Jon was instrumental in the development
            Pubs in the Northern area. noel.moffitt@christie.com                of our corporate pubs business in the early 1990s and established our
                                                                                leisure and development business in 1995. jon.patrick@christie.com
              Brian Sheldon joined Christie + Co in September 1991, having
              previously gained considerable experience in both the property                 Peter Taylor qualified as a Chartered Surveyor in 1975 and has
              and banking sectors. He has been based at the Glasgow Office                   specialised in licensed property since 1977. He originally joined
              for approximately 16 years, concentrating primarily on projects                Christie + Co in 1996, based in Milton Keynes. He now works
within the licensed sectors. Brian was made a Director of Christie + Co in                   in London and was appointed a Director in 2004. Peter is also
2002 and was recently appointed Agency Director for Scotland. Working           a member of the Chartered Institute of Arbitrators. He is on the RICS’s Panel
across our offices in Edinburgh and Glasgow, Brian oversees the Agency          of Arbitrators and Panel of Independent Experts and is appointed in these
activity throughout all sectors. brian.sheldon@christie.com                     capacities to resolve rent review disputes. peter.taylor@christie.com




                                                                                                                             www.christiecorporate.com

				
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