Property investor buys UK pub group for £107m

Property investment company NewRiver has completed its acquisition of UK pub chain Hawthorn Leisure for £106.8m, creating a business with more than 600 pubs to its name.

The Birmingham-based pub chain comprising 298 pubs has been bought for £106.7m

Based out of Birmingham, Hawthorn Leisure was founded in 2014 by Noah Bulkin and has 298 pubs in its portfolio, mainly in the north of England.

Founded in 2009, NewRiver is one of the UK’s largest owners of convenience-led community shopping centres with a UK property portfolio of £1.3bn, which comprises 33 shopping centres.

Acquiring the group from Avenue Capital for £106.8m, NewRiver said it had targeted the pub sector because of its “low-risk, diversified cash returns”.

The company acquired its first portfolio of 202 pubs from Marston’s PLC in November 2013, and another 158 pubs from Punch Taverns in 2015.

With this latest acquisition, NewRiver is now responsible for a portfolio of more than 600 pubs. 

Mark Davies, chief financial officer said: “Having acquired our first portfolio from Marston’s in 2013, we are well aware of the attractiveness of the high cash returns generated by pubs, as well as their inherent active asset management and risk-controlled development opportunities.

“Importantly, we have also retained cost discipline on this transaction that we have tracked for some time, acquiring the portfolio at an attractive net initial yield of 13.6% and inheriting a strong brand and management platform.”

NewRiver also said it would look to maximise the potential of new sites by building convenience stores or residential units on surplus land adjacent to pubs.

In the year to 31 December 2017, Hawthorn Leisure generated an Adjusted EBITDA of £9.9m.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Key Account Manager

MMI Maldives

Financial Controller

London City Bond
Barking, UK

Duty Manager

The Whisky Exchange
Great Portland Street, London

Spirits Advisor

The Whisky Exchange
London, UK

International Sales Manager

Elixir Distillers
Park Royal, London, UK

Brand Marketing Executive

Elixir Distillers
Park Royal, London, UK

Cellar Door Manager

House of Townend
Melton, North Ferriby, UK

Marketing Assistant

Bancroft Wines Ltd
London, UK

Marketing Manager

The Whisky Exchange
Whitby Avenue, Park Royal, London NW10 7SF

Millésime Bio 2020

27th Jan 2020

Maisons Marques et Domaines Annual Tasting

London,United Kingdom
29th Jan 2020

Austrian Wine Tasting

London,United Kingdom
3rd Feb 2020
Click to view more