View more on these topics

Close pub EIS awaits last orders

Close Investments is offering investors a last chance to invest in a pub enterprise investment scheme before new rules are introduced that put a question mark over the diversity of future issues.

EIS pub companies will be limited to fund raising of £2m from mid-July – a change which Close Investments believe will restrict the diversification of pub EIS companies. It is aiming to raise £8m through this offer, which will allow the company to diversify across 6-8 food-orientated freehold and long leasehold pubs.

The EIS will follow a similar strategy to the first imperial pub EIS and will share the same management team, Oriental International, which will trade as Eat Your Heart Out. It has identified the best locations for pubs through a combination of demographics and workforce data. Each potential site within the region will be assessed to ensure that there are enough target customers to make the opportunity attractive. Workforce data will be analysed to ensure there is a prospective lunchtime market while population data will also be analysed to ensure sufficient evening and weekend target customers.

The EIS will invest in premises that are already big enough to trade as successful pubs or those that could be refurbished or extended to a sufficient size. Premises must meet the existing EYHO criteria based on purchase price, character and size of building, refurbishment potential and local demographic factors. Growth will be derived from buying pubs with good prospects for increasing business and profits, growth of pub property values,

refurbishments and extensions to the properties and the creation of a group of complementary pubs that would usually be valued at a price greater than their individual value.

The EIS will look for pubs that are trading at a level below their full potential because they have been mis-managed or that refurbishment will enhance trading.

The directors say the UK pub market is a well-established, mature trading sector. The introduction of new licensing laws in November 2005 that increased trading hours, was a big change and now the industry is preparing for the introduction of the smoking ban. Drink led pubs are expected to be hardest hit but the directors of this EIS say the recent example of Scotland, where smoking in pubs is already banned, demonstrated that food-driven public houses will benefit from the smoking ban.

As an asset-backed EIS, this is lower risk than some schemes because the pubs are properties, which can be sold if necessary. This EIS will also have the diversity that may be unavailable to subsequent schemes.

Recommended

Few advisers believe personal accounts will stimulate saving

Over three-quarters of advisers believe pension perso-nal accounts will lead to more money being recycled rather than generate new savings.In a survey of 100 IFAs, Aegon found that eight out of 10 believe personal accounts not will encourage significant new saving while over 90 per cent believe there needs to be a clearer definition of […]

On and off the menu – the timeline

January 2002 FSA announces plans for a defined-payment system whereby only fee-based advisers can call themselves independent. October 2002 FSA drops plans for the defined-payment system in favour of Aifa’s suggestion of a payment menu, in the face of massive opposition to its original plans. February 2004 FSA estimates the one-off industry costs of the […]

FundsNetwork adds new fund links to onshore bond

Fidelity FundsNetwork is to add 11 new fund links to its onshore investment bond which will bring the total choice available to over 200 funds. The new fund links include Aegon ethical cautious managed fund, Fidelity retirement funds range, Threadneedle UK property trust and SWIP diversified assets fund.FundsNetwork head of sales and marketing Rob Fisher […]

Judicial review is only route open to IFAs

I write regarding your comments published on the front page of Money Marketing on May 31 regarding “well rehearsed IFA grievances” and “only being accountable through the complex judicial review process yet advisers are not having any problems using this route”.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com