Capital buys Puzzle pubs

October 1, 2007: The Capital Pub Company has acquired Puzzle Pub Holdings Ltd which owns two freehold pubs in central London.

Both are called The Puzzle Pub and are located on Garratt Lane in Earlsfield, SW18, and on the Fulham Palace Road in Hammersmith, W6.

Capital is paying £5.75 million for Puzzle, comprising £5.5 million in cash at completion and a further £250,000 of deferred cash consideration payable 12 months later, conditional on the performance of one of the pubs in that period.

Capital has secured an additional £8 million of funding with Allied Irish Bank over 10 years from which the transaction is being financed.

The Capital estate now comprises 26 free houses in London, all but three of which are freehold.

David Bruce, chief executive of the Capital Pub Company, said: "These Puzzle pubs are exactly the type of pubs that we seek to buy. They are freehold and
have their own character and local customer base. The acquisition of these pubs will complement our existing portfolio perfectly.”

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