The long leasehold interest in more than 80 former Brains pubs is under new ownership following a £12m deal.
Brew Propco, which is majority owned by private equity firm Westbrooke Private Capital, was backed in acquisition with a commercial loan from Cardiff-based Hodge Bank.
The pubs, across south and west Wales are let to Marston’s, which which took over the running of the pubs from SA Brain & Co back in 2020 in a 25-year lease agreement..
Brew Propco has acquired the leasehold interest from Cerberus Capital Management. which maintains a freehold interest in the pubs.
The transaction was introduced by Cameron Hayes at specialist capital advisory firm, Arc & Co.
Marston’s, the Ƶ’s fifth-largest pub company, has recently increased its strategic focus on pub operations following the divestment of its share in Carlsberg Marston’s Brewing Company last year. it returned a robust financial performance during the six months to the end of March.
Hodge said its funding demonstrates a continued appetite for well structured, investment transactions in the leisure and hospitality sector and reaffirms the vital role pubs play as social and economic hubs in Welsh towns and cities.
According to the British Beer and Pub Association, pubs contribute more than £26bn to the Ƶ economy annually and have been experiencing a resurgence in the years following the Covid pandemic.
Gareth Davies, senior business development manager, real estate finance at Hodge, said: “It has been a pleasure working with Westbrooke Private Capital on this deal and we’re proud to have backed a real estate transaction of this scale in Wales, our home and our heartland.
"Supporting the acquisition of 83 long leasehold pubs across the South and West of the country demonstrates not only our commitment to the leisure and hospitality sector, but our ongoing support for businesses in Wales. Pubs remain a vital part of the social fabric, and we’re excited to be part of a deal that continues to bring communities together.”
James Lightbody, head of real estate at Westbrooke Private Capital, said: "We’re delighted to complete this transaction with the support of our lending partner, Hodge.
"We’ve been involved with this portfolio since its original disposal by Brains in 2020 and this transaction with Hodge allows us to continue to support the sector and those pubs which are cornerstones of their communities in Wales.”
