Following the confirmation of Punch's release of 158 pub sites to New River Retail for £53m, the Pubs Advisory Service has called on the Government to review the Pubs code in reaction to the sell off. The Board believe the sites were sold to prevent the PubCo from opting for Market Rent Only (MRO).
The current codes imposed on PubCos owning more the 500 sites, must by law offer the licencees the ability to buy beer on the open market (to which the Pubs Advisory Board believe this should be lowered even further).
The acquisition by New River brings their tally of sites up to 350 (attained from two of the top four PubCos) the Board believe this is a good time for policy review.
New River's Property Director, Allan Lockhart says the company are committed to the tied model. He said the company would be a hands on landlord and wanted to have a similar relationship with its pub tenants as it had with those in its shopping centre portfolios.