Hodge Real Estate Finance has completed a significant commercial investment loan to Brew Propco Limited, majority-owned by Westbrooke Private Capital, facilitating the acquisition of 83 long leasehold pubs across South and West Wales. The transaction, worth approximately €75m, was orchestrated by Cameron Hayes at specialist capital advisory firm Arc & Co, demonstrating the growing appetite for hospitality real estate investments in the post-pandemic era.
The substantial portfolio comprises well-established public houses formerly owned by the iconic Welsh brewery Brains, now secured under a 25-year lease agreement with Marston's, the UK's fifth-largest pub company. This strategic move comes as Marston's refocuses on pub operations following its 2024 divestment from Carlsberg Marston's Brewing Company, with the company reporting robust financial performance in the six months to 29 March 2025.
What makes this deal particularly attractive to investors is the underlying freehold potential and development opportunities within Welsh town centres, where pub sites often occupy prime real estate positions with significant redevelopment value. The 25-year lease structure provides immediate cash flow certainty whilst preserving long-term asset appreciation potential, a combination rarely found in today's commercial property market.
The transaction underscores the resilience of the UK pub sector, which, according to the British Beer and Pub Association, contributes over €30bn annually to the economy and has experienced a remarkable recovery following the COVID pandemic. This resurgence has caught the attention of institutional investors seeking stable, community-anchored assets with strong defensive characteristics.
Gareth Davies, Senior Business Development Manager at Hodge Real Estate Finance, emphasised the strategic importance: "It has been a pleasure working with Westbrooke Private Capital on this deal and we're proud to have backed a real estate transaction of this scale in Wales, our home and our heartland. Supporting the acquisition of 83 long leasehold pubs across the South and West of the country demonstrates not only our commitment to the leisure and hospitality sector, but our ongoing support for businesses in Wales. Pubs remain a vital part of the social fabric, and we're excited to be part of a deal that continues to bring communities together."
James Lightbody, Head of Real Estate at Westbrooke Private Capital, highlighted the long-term vision: "We're delighted to complete this transaction with the support of our lending partner, Hodge. We've been involved with this portfolio since its original disposal by Brains in 2021 and this transaction with Hodge allows us to continue to support the sector and those pubs which are cornerstones of their communities in Wales."
People mentioned:
- Gareth Davies - Senior Business Development Manager, Real Estate Finance at Hodge
- James Lightbody - Head of Real Estate at Westbrooke Private Capital
- Cameron Hayes - Specialist capital advisory at Arc & Co
Companies mentioned:
- Hodge Real Estate Finance - Cardiff-based independent financial services group providing mortgage, savings and real estate finance
- Brew Propco Limited - Property company majority-owned by Westbrooke Private Capital
- Westbrooke Private Capital - Private investment firm
- Arc & Co - Specialist capital advisory firm
- Marston's - UK's fifth-largest pub company, lessee of the pub portfolio
- Brains - Former Welsh brewery owner of the pub portfolio
- Carlsberg Marston's Brewing Company - Joint venture divested by Marston's in 2024
- British Beer and Pub Association - Industry trade body
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