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Noble takes Capital Pub Company 2 into round two

Noble & Company is aiming to raise up to 8.82m through a second round of funding for the Capital Pub Company 2 enterprise investment scheme (EIS).

The EIS was set up in January 2004 and has raised just over 7.7m to date. This new round of funding will enable it to reach the 16m mark, which is the maximum permitted under current rules. It will continue using the same resources as the first Capital Pub Company EIS, which was established in 2001.

David Bruce, chief executive of the original capital pub EIS, is responsible for identifying and acquiring suitable sites. He is also in overall charge of the pub management side. Clive Watson, finance director of the original EIS, deals with the legal and financial aspects of the business, including budgeting and performance monitoring.

The EIS invests mainly in non-branded freehold pubs in and around greater London which provide high quality food, drink and service. The company says there is a potential customer base of 6m people in this area and has bought two freehold pubs since launch. It intends to add another 10 pubs to the portfolio during the next three years and prefers freehold pubs as they provide the extra security of asset backing to investors.

The directors of this EIS believe pub regulars in London are more likely to drink in independent pubs that have their own identity, as this will make them stand out from pub chains or those that are tied to a specific brewery.
Changes in April last year have made the EIS the only investment for deferral of capital gains and this could make Capital Pub Company 2 attractive to some investors.

This EIS is lower risk than some schemes because it will be backed by property which can be sold if necessary. But its success depends upon the ability to find suitable pubs in the target area, although the directors believe they have the contacts to do this.

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