Acquisition and increase in Mosaic Shareholding
City Pub Group PLC
("City Pub Group" or the "Company")
Acquisition of 49% stake in Kensington Park Hotel
and
Increase in shareholding to 24% in Mosaic Pub and Dining
Kensington Park Hotel
The City Pub Group is pleased to announce that it has acquired a 49% stake in Barts Pub Ltd, owner of the iconic Kensington Park Hotel ("KPH") in Ladbroke Grove, for £0.75m.
The KPH is a leasehold pub located 200 metres from Ladbroke Grove tube station. It has large trading areas on the ground and first floors, benefits from seven hotel letting rooms and has potential for a further four letting rooms on the top floor. Ladbroke Grove is a prime residential area in London and the Company trades very successfully at the Cock & Bottle, Notting Hill, which is located close by.
The City Pub Group will operate the pub under a management contract and has an option to buy the freehold for £5.5m up until March 2024.
Mosaic Pub and Dining Group
The Company is also pleased to announce that it has increased its stake to 24% in certain companies within the Mosaic Pub and Dining Group, through the acquisition of existing shares in The Galaxy (City) Pub Company Limited, The Pioneer (City) Pub Company Limited and The Sovereign (City) Pub Company Limited (the "Mosaic Companies") for a total cash consideration of approximately £1.18m. The Company acquired a 14% stake in the Mosaic Companies in September 2020 and this transaction takes its total investment to £2.42m.
The Mosaic Companies own nine prominent pubs, predominantly in London and Birmingham, of which 7 are freehold. Mosaic has a strong balance sheet with over £3m in cash deposits and a very strong freehold asset-backing.
The City Pub Group and Mosaic jointly negotiate their major liquor supply deals (draught beer, spirits, wines, soft drinks) and the Company's investment will help to cement this relationship. It is the intention of both the Company and Mosaic to assist each other in advancements in technology, especially in areas such as the City Club app.
Clive Watson is an investment consultant to Mosaic. Richard Prickett, Non-Executive Director of the City Pub Group, is a Non-Executive Director of The Pioneer (City) Pub Company Limited.
Clive Watson, Executive Chairman of the City Pub Group, commented:
"These two corporate transactions demonstrate that the Company can provide liquidity for shareholders in EIS companies on a staged basis, with the aim of significantly increasing the size of the our portfolio over the next 2-3 years. We will continue to look at selective, high quality single pub acquisitions as well as larger estates."
29 April 2021
About KPH
Established 155 years ago, KPH has a colourful history. Most recently it was only kept as a pub following a campaign by Eddie Izzard and Cerys Matthews, the welsh singer.
It was the venue for Tom Jones's first gig in 1960 and hosted the Clash and Paul Weller of The Jam fame. Regular visitors included Oswald Mosely, the fascist leader, Thin Lizzy's Phil Lynott and Timothy Evans, who was wrongly hanged in 1950 for the murders of serial killer John Christie.
In 2014, KPH was declared an "asset of community value" by Kensington Borough Council.
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Enquiries: |
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City Pub Group |
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+44 (0) 20 7457 2020 |
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+44 (0) 20 3100 2000 |
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