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Last Updated: Wednesday, 8 December, 2004, 10:44 GMT
Entrepreneur Tchenguiz buys pubs
A pub
Globe believes pubs provide strong cash flow
A new pub company backed by Robert Tchenguiz, the multimillionaire Iranian-born entrepreneur, is entering the UK market by buying 364 outlets.

Globe Pub Company is acquiring the pubs from Spirit Group, a leading pub owner, for about 345m ($666m) and plans to run them as tenanted operations.

Mr Tchenguiz and his brother Vincent are worth 400m and have been linked with several high profile retail names.

Globe said it would consider buying other outlets in the future.

'Good investment'

Tchenguiz empire
Inn Partnership(1,300 pubs)
13% stake in Regent Inns
Stake in whisky distiller Kyndal
Consensus property Business Group
Quintel 3G technology firm
Rotch Energy

The newly acquired pubs will be managed under lease by Scottish & Newcastle Pub Enterprises, a leading player in the industry.

Globe said the deal would give it a platform to buy other pubs, which it would also seek to run on a tenanted basis.

"The pub business is a terrific sector and represents a good investment for us," a Globe spokesman told BBC News.

"It has very good assets with strong and stable cash flow."

The deal marks a return to the pub counter for Mr Tchenguiz, who built up a 35% stake in tenanted pub operator Pubmaster a couple of years ago.

The company was sold to Punch Taverns for 1.2bn last year.

Other interests

Globe is also currently in negotiations to buy the Laurel Pubs Company, which specialises in managed pub businesses such as Hog's Head.

The brothers are the preferred bidder for the company after tabling a 151m bid.

Globe intends to run the two businesses separately.

The Tchenguiz brothers also have a stake in pub operator Regent Inns through their property investment vehicle Rotch.

Victor, their father, was born in Iraq but fled to Iran to avoid persecution.

He subsequently became the Shah's jeweller.

Robert Tchenguiz hit the headlines last year when he considered making a bid for Selfridges department store.

He later shelved the plan.

Spirit Group became one of the UK's largest pub owners when it bought Scottish & Newcastle's licensed estate for more than 2bn last year.




SEE ALSO:
Brewers bow out of the pub
06 Oct 03 |  Business
Tchenguiz scraps Selfridges bid
04 Jul 03 |  Business


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