Roadside Real Estate disposes of remaining four pubs

29th Aug 2024 13:31

(Sharecast News) - Roadside Real Estate announced the completion of the disposal of its remaining four pubs on Thursday, as part of its strategic shift to concentrate on its core roadside real estate assets.

The AIM-traded firm said the move marked a significant step in its plan to streamline operations and focus resources on its primary business activities, as outlined in its interim results announcement on 27 June.

It said the pubs involved included The Bull Hotel, The Rose and Crown, and The Eliot Arms, all of which were held as leaseholds, as well as the freehold Coach & Horses.

Roadside Real Estate terminated its existing leases on the three leasehold properties without incurring any costs.

The operational responsibility for the pubs was transferred to PS91 Hospitality, the existing management team, which had entered into new lease agreements with the landlords of the establishments.

Regarding the Coach & Horses, Roadside Real Estate said it retained ownership of the freehold, but had granted a lease to PS91 Hospitality, allowing it to manage the operations of the pub moving forward.

The disposal did not involve any financial consideration for Roadside, nor were there any fees associated with the termination of the leases.

Roadside said the assets involved in the transaction reported a loss before tax of £0.8m for the period ended 30 September 2023, after accounting for central costs, and were held at a total carrying value of around £0.2m.

The disposal was expected to improve the company's operational efficiency by eliminating loss-making assets and enabling a sharper focus on its roadside real estate portfolio.

Roadside's board said the strategic realignment reflected the company's commitment to enhancing long-term shareholder value by concentrating on its core business of owning, developing, and managing roadside commercial properties.

The company's portfolio was now primarily composed of assets strategically located to serve motorists and support businesses catering to roadside services.

"We are pleased to have concluded the exit of our pub business and we continue to focus on the execution of our roadside real estate strategy," said executive chairman Charles Dickson.

At 1040 BST, shares in Roadside Real Estate were up 1.57% at 21.33p.

Reporting by Josh White for Sharecast.com.