View more on these topics

Second helping of Capital Pub EIS

Noble & Company is aiming to raise up to £10m for the capital pub company 2 enterprise investment scheme (EIS), which will acquire an initial portfolio of 12 pubs over the next three years.

The first capital pub company EIS was established in 2001 and has raised £15.4m through two share offers and a private placing. EIS rules prevent the company from raising further money for the first fund so the directors have set up the second EIS to follow a similar strategy. The second EIS will use the same resources as the first through an introducer agreement and a management contract to minimise costs and draw on the experience of those involved in the existing EIS.

David Bruce, chief executive of the original capital pub EIS, will be responsible for identifying and acquiring suitable sites for the second EIS and the day to day operation of the pubs. Clive Watson, finance director of the original EIS will deal with the legal and financial aspects of the business, including budgeting and performance monitoring.

They 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.
The target premises will mainly be freehold properties as this provides extra security for investors as an asset-backed investment. They will also be looking at underperforming pub groups which will benefit from a new licence.

This EIS is lower risk than some schemes because it will be backed by property. However, its success depends upon the ability to find suitable pubs in the target area and the directors believe that the contacts they have made through the first EIS will make this easier. However, there could be a conflict of interest if a particular pub looks suitable for both EIS companies.

Recommended

FSA fines inividuals for distorting financial results

The FSA has taken its first enforcement action in relation to senior management of an insurance company, banning six former directors of a UK insurance company called Chiyoda Fire and Marine Insurance Company for their role in distorting financial results in 1999 and 2000.Three individuals, Yoshiaki Yamazaki, Hiroshi Okazaki and Robert McKibbin are prohibited from […]

Pensions Bill not enough – NAPF

The National Association of Pensions Funds says today&#39s Pensions Bill fails to address the fundamental long-term weaknesses in the UK pension system. The occupational pensions trade body says it supports the bill&#39s proposals to increase security for defined benefit schemes, better information, a more flexible approach to scheme funding and better regulation, but argues there […]

Kreis plaices trust in Cod EIS

KREIS CONSULTING Johnson Seafarms &#45 Cod 1 Type: Enterprise investment scheme Aim: Growth by investing in a Shetland-based cod farm Minimum investment: Lump sum £30,000 Opening/closing date: January 1, 2004/March 1, 2004 Charges: Initial 4% Commission: Initial 2% Tel: 0141 5641523 Johnson Seafarms &#45 Cod 1 is an enterprise investment scheme investing in a cod […]

Accountants feel the chill

Financial services industry workers feeling the pressure should maybe take a leaf out of chilled accountants BDO Stoy Hayward, which is offering staff yoga classes in company time. Getting colleagues into the lotus position every Friday morning at the firm&#39s Baker Street ashram is guru Emma Howard, stret-ching the sinews of her work chums into […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment