Punch buys Milton Three Pub Group

Punch Pubs and Co has bought the Milton Three Pub Group out of administration. The chain is understood to have paid around £15m for 24 pubs in the portfolio. The pubs were put up for sale in February through Avison Young and Watling Read Estate. The assets, which are spread across the North East and Yorkshire, were offered as a portfolio or individually. No guide price was set.  Milton Three Pub Group was placed into administration in November 2023 after its lender, Metro Bank, became concerned about its ability to meet its debt service obligations. At the date of the administration, the bank had a total indebtedness of £14.9m through two government-backed loans provided to the operating company and a loan to the propco, to which Milton Portfolio Op Co 3 is guarantor. Interpath Advisory was administrator to the company. Emma Turnbull, associate director at Avison Young, said. “Interest exceeded our expectation, which demonstrates that the market remains strong for the right pub product, in what is considered to be a difficult trading environment.” The sale attracted two rounds of competitive bids, with Punch Pubs and Co being the successful bidder for 24 pubs. One pub, The Victoria in Whitley Bay, was stripped out and sold to Amber Taverns. Prior to the coronavirus pandemic, the pubs had a turnover of more than £13m per annum. Photo by Marcelo Ikeda Tchelão/Pixabay