Pubs Selling For Alternative Uses - 18th June 2010

Changes afoot for old pubs

It is well known that the property market is cyclical and this is particularly so in the license trade. “We have gone through two serious recessions in our 20 years” reports Mike Phillips of Stonesmith. “In the early 1990’s there were various brewery and pubco disposals of underperforming pubs, some of which were then bought 10 or 15 years later by alternative pub groups desperate to increase their market share. We are now back to a similar position where all the large operators are restructuring their tenant estates with numerous closed pubs being offered for sale over the last 6 months or so”.

However, every cloud has a silver lining, and these low cost properties offer excellent opportunities for alternative uses. Examples sold by Stonesmith recently include The Corner House in High Street, Crediton and the Cross Keys, Gold Street, Tiverton. Both were high street buildings with upper floors, that were sold to developers for conversion into flats with ground floor retail/commercial accommodation.

Whilst some pubco disposals will remain as pubs, including for example The Old Union Inn at Stibbs Cross Nr Torrington and The Globe in Chulmleigh, they will again be operated hands on following substantial investment by the new owners.

Old pubs also offer opportunities for alternative hospitality type uses and Stonesmith sold The North Country Inn in Barnstaple and dealt with Judge Jeffery’s In Magdalen St, Exeter, both going for speciality restaurants.

Stonesmith believe these recent successes underline the popularity of the region and the general level of confidence. “Hopefully, the number of brewery disposals will reduce over the next 12 months allowing the private owner market to move forward again” state Stonesmith