Spirit puts £600m pubs on sale

SPIRIT, the UK's largest managed pub company, is putting 300 pubs up for sale in a deal that could net £600 million and pave the way for a stock market flotation.

The company, headed by Karen Jones, has instructed investment bank Lazards and property consultant Colliers CRE to sound out potential buyers for part of its estate.

Details of the sale are expected to be circulated in a couple of weeks' time but several potential buyers are understood to have already approached the company. Spirit will continue to operate the pubs, which it will lease back from the new owners.

Some of the pubs being sold came with Spirit's £2.5 billion purchase of Scottish & Newcastle's estate two months ago. Spirit's main backer, venture capital company Blackstone, is understood to be keen to float the company in the near future.

Spirit, formerly part of the Punch Taverns group, has 2,470 pubs including Bar Room Bar, Wacky Warehouse and Mr Q's. It is at present considering options for its budget hotel chain, Premier-Lodge, which was acquired as part of the Scottish & Newcastle purchase, but which it is likely to sell on.