Merchant Inns chairman Robert Breare has announced a 50:50 joint venture with property magnate Sir John Ritblat in his bid to expand the pub group’s freehold estate across the UK.
The pair have formed investment vehicle Kamside to purchase the five strong pub and accommodation chain in a deal believed to be worth £11m plus £10m in debt.
Merchant Inns is already lining up a sixth purchase with another two in the pipeline for completion before Christmas adding to their sites in Berkshire, Wiltshire, Oxfordshire, Surrey and Cambridgshire.
Earlier this year, Breare revealed that he intended to take the number of sites owned by the company up to 50 over the next three to four years.
“Merchant Inns will continue to focus on purchasing and restoring freehold inns in easily accessible, out of town locations throughout the UK,” he said. “The philosophy of premium casual dining at affordable prices on which the company has built its reputation will remain paramount.
“However, we firmly believe in the emergence of an accommodation category we call luxury budget, and our future investments will reflect this,” Breare added.
Merchant Inns doubled its turnover to £1.68m (from 0.88m in 2006) at the end of their financial year on 30 June. However its Wiltshire and Oxfordshire pubs spent a total of nine months closed during the year, with its pubs in Surrey and Cambridgeshire acquired later in the year.
Merchant Inns in talks to secure £150m extra funding >>
Read more news on pubs and bars here >> By Christopher Walton
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