City Pub Group expands portfolio in vote of confidence in London’s hospitality sector
The City Pub Group has increased its stake in two hospitality chains in a vote of confidence in London’s pub sector.
It has bought a 49 per cent stake in Barts Pub, the owner of Ladbroke Grove’s Kensington Park Hotel, for £750,000, and will operate the pub under a management contract.
The City Pub Group will also have the option to buy the property’s freehold for £5.5m up until March 2024.
In a separate deal, the company has increased its stake to 24 per cent in certain companies within the Mosaic Pub and Dining Group, which owns 19 London pubs.
The £1.18m deal takes its total investment in Mosaic to £2.42m.
The deal with Mosaic will strengthen the supply deal partnership between the two firms, and they will also “assist each other in advancements in technology”.
Clive Watson, executive chairman of the City Pub Group, said: “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 our portfolio over the next 2 to 3 years.
“We will continue to look at selective, high quality single pub acquisitions as well as larger estates.”