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Royal Bank Of Scotland To Sell Off 900 Freehold Pubs

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The Royal Bank of Scotland (RBS) is to sell off about 900 freehold pubs it acquired from brewer Scottish & Newcastle around 10 years ago.

RBS is reported to be on the point of appointing advisers from corporate finance firm Sapient, according to the Daily Telegraph.

The deal is estimated to be worth in the region of £600m. The freehold of Guy Ritchie's Mayfair pub, the Punch Bowl, is one of those thought to be up for sale.

The original deal with Scottish & Newcastle was considered innovative at the time because the company continued to provide property management and beer to the pub estate after the transaction with RBS was completed.

Gee whiz. Is there anything this crazy banking cartel didn't take a punt on?

What are the implications of this?

EDIT: I assume this is part of the LLoyds group forced selloff?

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LLOYDS Banking Group has appointed a top integration manager to lead the sale of assets that will create a new bank with five million customers.

Paul Pester becomes chief executive of "Project Verde" which will oversee the disposal of more than 600 branches into what will become the seventh-largest bank in the UK.

The sale, ordered by the European Union as a condition for accepting a UK government bail-out, will bring together the Cheltenham & Gloucester business, Intelligent Finance, 185 Lloyds TSB Scotland branches and another 250 in the Lloyds TSB network in England and Wales.

Pester led the team that created Virgin Money, now headquartered in Edinburgh, and as managing director of Santander UK he pulled together Bradford & Bingley with the Abbey and Alliance & Leicester businesses.

He will report to Alison Brittain, when she joins the group as head of Bank of Scotland and Lloyds TSB branch networks, in September. Pester is taking on this role in addition to his responsibilities as managing director, consumer banking and payments. The former Oxford physicist and ex-McKinsey management consultant is a non-executive director at Visa and at MicroFocus International, the FTSE 250 software business.

The Verde business will have a 4.6 per cent share of the UK personal current account market and up to 19 per cent of the group's mortgage assets. It is due to be sold by November 2013. Until then, banking services for Lloyds' customers, including account numbers and sort codes will remain unchanged. Lloyds says that branches will operate as they do currently and no difference will be seen between those being divested and those staying with the group.

António Horta-Osório, group chief executive, said of Pester and his team: "They will bring significant retail and commercial banking experience to create what will be a well-capitalised bank and a strong competitor to the other UK banks and building societies."

Pester said: "I am delighted to be in the position of shaping and growing a new business which will serve over five million customers and service over eight million accounts."

In another senior appointment, Lloyds has poached Toby Strauss, Aviva UK's life and pensions chief executive, to head up the group's insurance business which includes Scottish Widows.

Strauss will replace Phil Loney, the head of life and pensions, who is leaving Lloyds after the summer to become chief executive of rival Royal London, owner of Scottish Life.

The bank has also promoted Rosie Harris, currently divisional risk officer, insurance, to be managing director, general insurance. She effectively replaces Andy Briggs, another high profile departure from Lloyds Banking Group who will take the top job at insurer, Friends Provident.

Edited by cashinmattress

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Gee whiz. Is there anything this crazy banking cartel didn't take a punt on?

What are the implications of this?

I get to buy a boozer and turn it in to a first class music palace?

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Gee whiz. Is there anything this crazy banking cartel didn't take a punt on?

[/quote

Ponzi scheme, in cosy cosy alignment with central bank monetary policy - threw as much money as they could at property, regardless of the risks as the central bank would always bail them out either with low interst rates or directly through QE.

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thats about 750k a pub, i doubt there all in mayfair.

need to sell a million pints to get just your money back not taking into account all the running costs. say 250k pints/drinks a year just to pay for the building over 5 years.

say 800 drinks a day + another 300 or so for running costs.

i dont wanna drink in a pub thats throwing the beer out like a disorganised canteen.

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OK, so they are selling the freeholds.

How many of these pubs have tenants in situ?

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Its an interesting one, if they sell the freehold then the likes of Punch and Enterprise could be interested as they kan keep the tennents but they would have to do someting about the tennant agreements and I'm not sure how that would work out.

If they dont have tennets then I could see M&B or Stonegate snapping themup and converting to managed. After M&B sold off their333 pubs to Sonegate they are looking to fill te void and Stokegate have expressed an interest of growing and growng quickly. I wait with interest.

Edited by FIGGY

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chinese takeaways.

Several pubs around my way (south yorks) closed as pubs and re-opened as chinese/thai/oriental restauraunts.

There was a thread on here a couple of years ago about a local (to me) pub where the leaseholder was being screwed by the pubco and looked like shutting. It's still hanging on by the skin of its teeth though.

One of the few pubs that seems to be thriving is a sam smiths place that sells beer at well under £2 a pint, and a working mens club with similar prices. We need the HPC to get rents and leases slashed so that more pubs can be viable.

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EDIT: I assume this is part of the LLoyds group forced selloff?

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How do they pick the branches/customers to sell/transfer to the new SPV ? The ones with debts or cash in the bank? What is better in terms of lending under fractional banking?

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How do they pick the branches/customers to sell/transfer to the new SPV ? The ones with debts or cash in the bank? What is better in terms of lending under fractional banking?

Banking to me is all black magic and voodoo. I know maths, have a lot of background in advanced calculus and linear algebra for science and engineering, but I'll be damned if I can figure out what makes these bankers think that 1+1=5, and am even more ruffled by the fact that the general population believes it.

The same goes for their management.

As for the selloff, my guess is that the good commercial and residential portfolio is up for grabs, as will be a good lump of deposits, but the dross is left for the taxpayer.

Who in their right mind is going to buy Britain's toxic debts?

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With the amount of pubs gone under already! Got to be a brave punter taking on a pub with beer not only past £3 a pint edging to £3.50. I find myself coming back from the pub almost sober. At this rate ill have to drink 4 cans of hobgoblin before I go out.

Are we approaching end game?

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There's a pub near me that's been in the same family through generations. Owned outright, it's very small, lovely gardens and it does very well, particular in the summer. It survives because the cost of the building isn't a factor. If it was ever sold, it simply wouldn't be viable. If it were priced cheaply for the good of the business, it would simply be bought as a house.

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There's a pub near me that's been in the same family through generations. Owned outright, it's very small, lovely gardens and it does very well, particular in the summer. It survives because the cost of the building isn't a factor. If it was ever sold, it simply wouldn't be viable. If it were priced cheaply for the good of the business, it would simply be bought as a house.

That reminds me of a sweet shop that was for sale in the lake district for 600k. That is a lot of chocolate!

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something dark is brewing in the banking world. The bubbles have burst and the head is out of steam.

id also pint out that hoarding assets when they should be used as secuity for loans is what they are doing for housing too.

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There's a pub near me that's been in the same family through generations. Owned outright, it's very small, lovely gardens and it does very well, particular in the summer. It survives because the cost of the building isn't a factor. If it was ever sold, it simply wouldn't be viable. If it were priced cheaply for the good of the business, it would simply be bought as a house.

There were a number of places like that in Suffolk in late 70's - just houses with a back room for a bar and you could sit in their lounge! The beer (like Adnams) was always superb served direct from a tapped barrel and the local copper used to come in after shift to the famous lock-ins in one!

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That reminds me of a sweet shop that was for sale in the lake district for 600k. That is a lot of chocolate!

Different kind of Bar but what the heck

Give it an association like 'Liz' Potters choc selection and charge 10x the price like all the other L.D places do.

I read a USA tourist write up (warning others) complaining that they were paying a rip-off average of £15.00 a day just in car park charges to visit the touristy places.

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There's a pub near me that's been in the same family through generations. Owned outright, it's very small, lovely gardens and it does very well, particular in the summer. It survives because the cost of the building isn't a factor. If it was ever sold, it simply wouldn't be viable. If it were priced cheaply for the good of the business, it would simply be bought as a house.

very true. HPI kills good businesses. Same with a village shop (with accomodation) in a village near me, owner retired, priced at £400k for a paper 'n' rolls plus small groceries type of joint the size of a family house. Pointless.

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very true. HPI kills good businesses. Same with a village shop (with accomodation) in a village near me, owner retired, priced at £400k for a paper 'n' rolls plus small groceries type of joint the size of a family house. Pointless.

went to Frankies and Bennies last night for a quick Spagbol.

the menu goes through the "history" of the firm...True or not, they claimed the immigrant frankie/bennie went to new york and the whole family and friends chipped in to create a unique service and of course, an empire...

discussed with Mrs Loo how one could do the same today?...tricky, what?

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went to Frankies and Bennies last night for a quick Spagbol.

the menu goes through the "history" of the firm...True or not, they claimed the immigrant frankie/bennie went to new york and the whole family and friends chipped in to create a unique service and of course, an empire...

discussed with Mrs Loo how one could do the same today?...tricky, what?

Eh? They're a developed UK franchise that sprang to life in the mid 90's, a creation of these guys.

The only thing Italian American immigrant about the place are the photos.

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EDIT: I assume this is part of the LLoyds group forced selloff?

Lloyds doesn't have anything to do with RBS... it aquired HBOS (ie. Halifax, Bank of Scotland)... not Royal Bank of Scotland.

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Eh? They're a developed UK franchise that sprang to life in the mid 90's, a creation of these guys.

The only thing Italian American immigrant about the place are the photos.

Rumour has it that Frankie Giuliani

was 10 years old when, with his Mamma

and Poppa, he left Sicily and landed at

Ellis Island, New York in 1924. They

moved in with relatives in Little Italy,

a predominantly Italian neighbourhood.

Poppa soon found work, but from the

home country he'd brought a little money

and a lot of ambition. It was no surprise

then, when the family opened a restaurant

within a year, everybody helping with the

building and the cooking in equal measure.

Each of them had a favourite dish to

contribute, but it was Mamma’s home-style

cooking that was the base from which the

business prospered. Frankie went to the

nearby High School and became lifetime

friends with Benny, already a third

generation American. In 1953 Poppa retired

and Frankie and Benny took over the

business, combining the best of popular

American food with traditional Italian

dishes. The rest, as they say, is history...

Here is whats on the menu.....LIARS the lot of them

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Here is whats on the menu.....LIARS the lot of them

Liars is a bit hard. Just a bit of harmless fantasy backstory. :)

No chain actually founded in 1953 would have resolutely filled its restaurants with 1950s images right through the 60s, 70s and 80s. They would have modernised.

Look at Mc Donald's for how a genuine 1950s American food chain would look today. Totally different and constantly modernising.

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There's a pub near me that's been in the same family through generations. Owned outright, it's very small, lovely gardens and it does very well, particular in the summer. It survives because the cost of the building isn't a factor. If it was ever sold, it simply wouldn't be viable. If it were priced cheaply for the good of the business, it would simply be bought as a house.

The two pubs I referred to in post #8 that can sell beer for >£2 pint were built in the 1960s and have been owned by the same people since. Pubs built or bought in the last 10 years are universally expensive (not that many on here need that pointing out) and forced to milk their customers for as much dosh as possible.

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The thing about all the pub companies holding leases is that they are hiding the extent of their tenants who aren't paying at all or are in serious arrears. I would bet that the majority of these RBS properties are either vacant or have non performing tenants.

There are instances where rent free periods have been negotiated with tenants with arrears if they accepted higher rents. All rescheduled so they stay in the pub by only agreeing to new terms which are all in the future. This all makes "Liar Loans" look good you know.

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went to Frankies and Bennies last night for a quick Spagbol.

the menu goes through the "history" of the firm...True or not, they claimed the immigrant frankie/bennie went to new york and the whole family and friends chipped in to create a unique service and of course, an empire...

discussed with Mrs Loo how one could do the same today?...tricky, what?

There was a bookseller chain that went bust a few months back. It was discussed on this board and a poster dug into the history and discovered they bought their first shop outright on what amounted to less than a years agricultural wage.

Of course now if you started out as a bookseller (or pub) you would be renting ... for ever. Most of the income going to the banks/rentiers.

So thats a lot of potential empires and chains that just aren't going to get off the ground any more.

Banking/rentierism gradually destroys the dynamism in an economy. Even technological advancement starts to fail as everything starts collapse into a semi-feudal system.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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