Punch Taverns sells five London pubs for £10m

STAFFORDSHIRE pubco Punch Taverns has agreed to sell a group of its pubs in London in a deal worth almost £10m.

The Burton-upon-Trent group, currently embroiled in a major restructuring saga, has sold five of its pubs in the capital to Manica Properties for a total consideration of £9.7m.

The pubs to be sold are freehold outlets located in central London. The agreement is expected to complete on June 30, 2014.

The money will be paid in cash and Punch said the net disposal proceeds would be used to reduce debt and reinvest in the overall group estate.

For the financial year ended August 17, 2013, the five pubs being disposed of generated earnings before interest and tax of £0.5m. As at March 1, 2014, the pubs had a book value of £4.4m.