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Pubs sell at three times book value


The past two years have witnessed an unprecedented number of public house closures. In 2010 the closure rate peaked at 52 pubs per week, but slowed to 25 a week in 2011, but the result was a dramatically reduced number of public houses in the UK, now standing at around 52,000.


The majority of pubs that closed are owned by larger companies which have found it difficult to find new tenants for vacant pubs. Underperforming pubs have found themselves in the ’turnaround division’, as pub companies look to consolidate their estates, disposing of the poorer performing operations to focus on enhancing the value of the better performing pubs and restaurants. The impact of the smoking ban, while noticeable, has paled beside the impact of the ongoing recession and availability of cheap supermarket alcohol. Increasing overheads at an operational level have also continued to have a significantly adverse impact.


However, there are quality trading houses throughout the southern region which have maintained


turnover and profitability levels during the downturn by ensuring standards are maintained and appropriate business strategies adopted. Operators recognise the importance of a diversified income stream, including a good food operation and where possible, the provision of letting rooms.


Dan Dempsey, valuation surveyor at CBRE, said: “Pubs that are coming to the market are seeing interest from developers and investors seeking to re-develop whole or part of the site for alternative end uses including residential, care homes, nurseries and convenience stores. His increasing interest in regional pubs has prompted competitive bidding scenarios and higher than expected sales figures in many cases.“


CBRE has been involved with the sale of two closed and boarded Hampshire pubs, Madeleine’s in Gosport and The Woodman in Southampton. Each was subject to a proposed lease agreement to Tesco Stores and sold at auction for values in excess of three times their book value as a public house.


Santander expands team


Santander Corporate Banking is expanding its business development team, the key focus of which is to support Santander’s growth plans, increased market share aspirations and ambition to be the SME ’bank of choice’.


Andrew Syvret, Chris Hallam and Jonathan Thompson have all been appointed as regional directors for business development, for various regions around the UK, with responsibility for developing new business propositions for Santander Corporate Banking and leading all regional business development activity.


Syvret has been appointed regional director for Thames Valley and the South West and will be based primarily at the Corporate Business Centre in Southampton. He will be responsible for the business development strategy across the region, including Bristol, Southampton


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and Reading. He joins from Goodwood Estates and prior to that, RBS.


Hallam joins as regional director for the Midlands and Wales, having come from HSBC where he worked for 30 years, most recently as the head of leading international business. He will be responsible for managing existing customer relationships and sourcing new business and will be based primarily at the Corporate Business Centre in Birmingham.


Thompson, who has been with Santander since 2009 and has a total of 15 years’ experience in corporate banking, has been promoted to regional director for the North and, based mainly in Yorkshire, will be leading a team of business development directors across the region, including Yorkshire and Merseyside.


The team is led by Damian McGann, head of business development.


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MAY 2012


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