Spirit has completed the disposal of its freehold pub, the Black Lion, on Bayswater Road in central London, to 123 Bayswater Road Limited for a total cash consideration of £27.0m, which it is intended will be re-invested in the retained Spirit business.
Spirit has also entered into an agreement with 123 Bayswater Road Limited to continue to run the pub for an agreed period.
In the financial year ended 17 August 2013 the Black Lion generated EBITDA, before the allocation of central overheads, of £0.7m. As at 1 March 2014, the pub had a book value of £7.6m – clearly the development value of the site multiplied this sharply.