Commercial property to be auctioned by Enterprise Inns

Wednesday, September 23, 2009

Pub group to sell assets in the hope of raising over £14 million.

By Jenifer Courtney

Enterprise Inns will hold sell seven of its freehold pubs in a commercial property auction next month.

The tenanted pub company has put the top-quality pubs up for sale with Allsop auctioneers on October 15th, the Morning Advertiser reports.

Enterprise hopes to raise £14.7 million at the auction ahead of new planning and development operations.

This figure looks realistic considering six of the premises are located in prime London trading areas including Westminster, Chelsea and Soho.

The remainder are located in Hammersmith, Putney, St John's Wood and Windsor and are likely to prove attractive to commercial property investors.

According to the website, Enterprise is offering a 35-year lease to the freehold purchaser, which will begin on the day of the auction.

"We believe that these properties will be very attractive to professional commercial property investors offering yields of around six per cent on expected selling prices," a company spokesman said.

Last month, two Enterprise lessees established their own operating company with the intention of opening five pubs by 2014.

Source: ask-re The Property People LLP