London Town property developer to expand as pub company
Property developer London Town has announced its intention to expand as a pub operator after completing a deal for 167 pubs from entrepreneur Jack Petchey for £94.6m.
London Town, which bought a clutch of pubs earlier in the year, plans to operate 105 of the sites as long-term trading units and will develop the remaining 62 sites, trading them normally until then.
162 sites were freehold properties, the remaining five are on long-leasehold agreements.
A LT spokesman said the group has ambitions to develop the company as a pub operator: "They like the characteristics of the sector, being strongly asset backed with good cash generation.
Anglo Irish bank is providing the group with nearly £73m of debt. The company is also being backed by an independent charitable trust, Horizon Trust, investment company Robar Limited and Incorporated Holdings, a parent company of Petchey Holdings.
Petchey, a former taxi driver turned property investor, bought 200 pubs from Punch Taverns in December 2005 for £98m.
Petchey buys 200 Punch pubs >>
By Emily Manson
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