City Pub Group disposes of six pubs

Landlord City Pub Group has disposed of six sites in two separate transactions, collecting approximately £17.1m in cash in the process.

City Pub said on Tuesday that it had exchanged contracts for the disposal of five pubs on the South Coast of England, which include three pubs in Brighton, as well as The Inn on the Beach on Hayling Island and The Travellers Friend in Woodford Green, Essex.

The AIM-listed firm stated all were freehold pubs, with the exception of Brighton Beach Club, and had a net book value of approximately £17.1m and recorded unaudited aggregate site underlying earnings of £700,000 for the year ended 26 December.

Portobello Starboard will snap up the assets for £16.2m in cash, with the transaction expected to complete on or around 11 April.

Separately, City Pub said it had sold The London Road Brewhouse, a freehold pub in Southampton, for £900,000, and noted that the proceeds from both sales will be used to invest and expand the group in other geographies across the UK.

As of 1125 GMT, City Pub shares were up 2.81% at 91.50p.