NewRiver REIT confirmed media speculation that it has entered into an exclusivity period in connection with a potential acquisition of U.K. community pubs owner Hawthorn Leisure Holdings Ltd.
The (U.K.) Times reported May 19 that the real estate investment trust is taking over the privately-owned company by paying more than £100 million. Hawthorn, which was recently placed on the market through Sapient Corporate Finance for more than £115 million, is controlled by its management and U.S.-based private equity firm Avenue Capital Group LLC.
Since its inception in 2014, the company has acquired 275 Greene King pubs for £75.6 million and 88 pubs from R&L Properties and bought two portfolios of managed pubs from Nectar Taverns and JD Wetherspoon. The company has also divested roughly 100 noncore assets so far, according to the report.
The publication added that private equity firm Patron Capital Ltd. and pubs operator Admiral Taverns were also in the race to acquire Hawthorn.
NewRiver REIT said in a news release that it will fund the potential deal with Hawthorn and its major shareholder through its existing resources, adding that there is no certainty that a transaction will be concluded.
