Metro Bank has provided Cirrus Inns with £11.67m in funding, enabling it to purchase three central-London pubs, previously owned by DM Group.
The new debt facility provided by Metro Bank has allowed Cirrus Inns to acquire the freeholds of the Cross Keys in Chelsea and the Sands End in Fulham, as well as the free-of-tie lease of Fulham’s Brown Cow, bringing the Cirrus London estate to five pubs and the overall portfolio to 23. The group separately raised an additional £10m of equity, which went towards the purchase and will also be used to fuel the company’s future growth.
Alexander Langlands Pearse, chief executive at Cirrus Inns said: “These are three great pubs run by great people and in amazing locations, which will crown our overall estate. We don’t want to lose the individuality of the pubs, but having five gives us a great platform in the capital that complements the approach we have taken in our pubs across the rest of the country.
“This marks the first time we have brought some senior debt into the company. We looked at a number of options to do that and Metro Bank was by far the most attractive. They have been incredibly supportive in terms of this acquisition and going forward into Chapter two of Cirrus Inns.”
Matthew Walton, head of hospitality & leisure at Metro Bank said: “We are delighted to have supported this transaction. The management team behind Cirrus is exceptionally strong and they have built an exciting estate, which these new acquisitions complement very well. We look forward to supporting the future growth of Cirrus with additional facilities over the years to come and maybe even pop in for a pint or two!”
Established in 2011, Cirrus Inns is an independent pub company, with a focus on London and the South of England. The pubs within the estate are predominantly high-end and food-led, with many sites also offering accommodation.
Metro Bank was advised by the law firm Howard Kennedy and property consultants Fleurets.