The former owners of the Capital Pub Company are planning to raise £100m for a new pubs venture.
Clive Watson and David Bruce, alongside former Fuller, Smith & Turner director John Roberts, are looking to raise up to £75m from private and institutional directors, plus £25m of debt for a £100m acquisitions vehicle – the City Pub Fund.
The £75m of equity will be raised via a tax-friendly enterprise investment scheme.
The trio, advised by RAM Capital Partners, are targeting up to 50 freehold and managed pubs for the new venture.
Although the move was being planned before this month’s House of Commons vote to scrap the historic beer tie, allowing landlords to buy beer on the open market, Watson said the parliamentary decision would add to the opportunity to build a good portfolio by increasing the number of pubs coming onto the market.
As many as 1,400 pubs are expected to close as a result of the removal of the beer tie, with some pub companies claiming it will hit “wet rents”.
Watson added he was “very confident” that the EIS would prove popular with investors as it would be asset-backed and offered a number of tax breaks, including 30% income tax relief, capital gains tax exemption and loss relief.
The City Pub Fund will be the largest launched by the trio, who also own the 18-strong City Pub Company.
