The licensed property market is as diverse as it is dynamic, resilient as it is creative and it is always capable of springing a surprise or two. Just as the world was groaning under the uncertainty of the economic future, merger and acquisition activity leapt into overdrive.
Despite the concerns over the Pub Code, fears of a staffing shortage, minimum wage rises and increasing purchase and operational costs; a staggering £8.15bn is estimated to have been invested in 18 key pub transactions in 2019. If you include leisure property investments and brewery transactions the total would be over £10bn.
The pub market is not struggling. The significant benefits of asset backed cash flow have attracted new overseas investors, established investment funds and existing trade buyers. They have all drawn the conclusion that the pub market offers sound investment fundamentals. We may face a few head winds, but the pub market, in all its exciting forms, has a great future; £8bn says it has!
By Simon Hall, Fleurets Leisure Property Specialists