Property developer London Town’s Inn Investment Ltd unit has struck a deal to buy a portfolio of five freehold pubs predominantly in the West of England for £2.95m excluding costs.

Completion is expected to take place in eight weeks and will be funded using a combination of bank debt and the existing cash resources of the business, the company said.

The pubs are operated by tenants on long-term free of tie leases and currently show a rental yield of approximately 7.5% of the total acquisition cost.

London Town announced its intention to expand as a pub operator last November after completing a deal for 167 pubs from entrepreneur Jack Petchey for £94.6m.

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By Daniel Thomas

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