Sirius Finance has completed a multi-million-pound deal to fund the purchase of a new pub in Sussex and restructure the borrower’s finances.
The transaction enabled Barons Pub Company to purchase the Curious Pig in the Parlour, which has reopened in Crawley, Sussex.
TWO-PART DEAL
As part of the funding for the purchase, Sirius also arranged for the financial restructuring of Barons Pub Company in a multi-million-pound deal.
The pub features 12 en suite bedrooms and, upon reopening, has a new food proposition.
“Pubs offering food, drink, and letting rooms are especially attractive to lenders because they provide three revenue streams”
Chris Field (main picture), head of care and hospitality at Sirius Finance, said: “At Sirius Finance, we are seeing a lot of demand from Licensed & Leisure businesses that want to expand their portfolio; often by refinancing existing debt facilities in order to tap into equity.
“A number of the corporate pubcos are disposing of non-core assets in order to raise equity and enhance focus on key sites. This is great news for the small to mid-size independent operators, who can often add significant value to such opportunities, that might not have fulfilled their full potential as managed houses.
“As part of this deal, Barons Pub Company spotted an opportunity to deliver a pub that would have a wide appeal, with food and ensuite bedrooms in an affluent location close to Gatwick Airport.
“Pubs offering food, drink, and letting rooms are especially attractive to lenders because they provide three revenue streams and we were able to secure this multi-million-pound deal to restructure the finances of the company and complete the purchase in a short period of time, thanks to the efficiency of the lender and associated legal teams.
“We’re currently working closely with multiple pub tenants who have been presented with the opportunity to buy the freehold interest of their business and have so far this year considered over 250 individual enquiries from tenants, keen to explore this further.”
“We’ve come away with a new pub as well as a much more favourable repayment profile of our existing loans”
Clive Price, managing director of Baron’s Pub Company Ltd. added: “We are delighted to be the new Freeholders at The Curious Pig in the Parlour.
“It is [a] lovely pub that fits in perfectly with our portfolio of pubs and we are delighted to be open and trading in our new addition to the Barons family.
“Sirius Finance helped us put this deal together and I was very impressed with Chris’ expertise in structuring things in such a way that not only made this purchase possible but also achieved a clever restructuring of the company’s finances. We’ve come away with a new pub as well as a much more favourable repayment profile of our existing loans.
We’d hit a brick wall with our existing bank, but Chris’ vision has allowed us to achieve this important acquisition and restructuring. His colleague Billie was super-efficient throughout to keep things moving at a cracking pace to achieve our deadline to complete before Christmas.”
