The Royal Bank of Scotland is edging ever closer to selling off the Galaxy group of pubs, in a deal thought to be worth around £700 million.
The state-owned bank is finally nearing the completion of the sale of the 900 pub freeholds - which are located across the UK - following a detailed review of the commercial portfolio by its corporate finance arm and Sapient Corporate Finance.
RBS purchased the Galaxy pubs group from brewer Scottish & Newcastle (S&N) in 2000, ensuring that the bank became one of the leading owners of pubs in the country. At the time of purchase, RBS signed a deal giving S&N rights to provide beer and property management to the 900 pubs, before the firm was acquired in 2008 by Heineken and Carlsberg.
Now, the Galaxy pub group is rumoured to be on the market as a result of the anticipated ending of a supply agreement with Heineken in early 2012. According to Thisismoney.co.uk, the new purchaser looks set to benefit from the more favourable terms which could be offered by a new beer supplier.
Whilst the sale has been in the pipeline, three property companies and one trade firm have reportedly lodged expressions of interest in the portfolio.
