NewRiver Retail (NRR) has picked up 158 pubs from Punch Taverns (PUB) for £53.5m, having previously bought 202 pubs from Marston's. The latest deal equates to a net initial yield of 13.6 per cent, and will generate a return on equity in excess of 20 per cent. The pubs form part of Punch Taverns' non-core portfolio, and have been marketed on a selective basis since April.
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In a novel departure, NewRiver has appointed a third-party specialist pub management company to run the day-to-day management side, while the company itself concentrates on asset management. It has already identified surplus land opportunities, which could be used for residential development or new convenience stores.
