London Town is buying 39 pubs from a property holding company for £16.24m, the pub operator has announced.

The deal, which works out at an average of £416,000 per pub, increases London Town’s portfolio of pubs to 225 sites.

The AIM-listed group, which entered the market last May, is buying the North and West of England based pubs from Save, which is part of Incorporated Holdings Ltd.

London Town said it is planning to borrow £12.7m from its bankers Anglo Irish and launch a near-£10m share issue to help fund the acquisition, which comprises 30 freehold and nine leasehold properties

The company estimates the portfolio will provide a gross income of "around £1.14m" a year, before charges payable to County Estates Management, which is running the pubs.

London Town group takeover of Petchy owned pubs approved >>

London Town swoops for portfolio of pubs in £95m deal >>

London Town website >> 

By Daniel Thomas

E-mail your comments to Daniel Thomas here.