Shoosmiths helps clinch £110m deal for Marston's

Shoosmiths helps clinch £110m deal for Marston's


Author: Sophie Llewhelin

National law firm Shoosmiths has teamed up with DCLM Commercial Property to help clinch a £110m deal for the public house giant, Marston's.

Shoosmiths' real estate team provided legal advice to long-standing client Marston's on an innovative sale and leaseback transaction of 45 public houses.

Shoosmiths' Vaqas Farooq and Lisa On-Iam led a cross-office team of nine real estate specialists from Manchester, Birmingham and Edinburgh on the multi-million pound transaction.

Further expertise was provided by two of the national law firm's tax partners, Niall Murphy and Tom Wilde.

The deal - transacted over three phases - involved the sale and leaseback of 18 new build public houses to Standard Life for £40.025m and 27 to Legal & General for £69.7m.

Shoosmiths worked closely with Marston's and DCLM Commercial Property to put together an innovative finance structure. Centered on and around a leaseback structure, it involves, amongst other aspects, the freeholds reverting to Marston's at no cost at lease expiry, culminating in exceptionally competitive long-term financing.

Farooq said: "This has been an exciting and unusual project to have advised on.

"We've been fortunate to have been involved in the conception and evolvement of the transaction. We also advised Marston's on the original purchase and development of the majority of the 45 public houses which they've acquired over the last five years.

"The positive outcome of this deal lies very much at the heart of the successful relationship we've managed to build with Marston's and the combined expertise of all those involved. It's also a great example of what can be achieved when you have the right teams in place."

Marston's estates director Edward Hancock said: "Shoosmiths' proactive approach to the deal really made the difference. They know how we work and will naturally think outside the box to meet the deadlines and find the best solutions. They really are experts in the legal market."

Andrew Andrea, Marston's chief financial officer, added: "We're delighted. It's been an interesting and complex process, but when you have capable teams on board and strong relationships in place, it's amazing what can be achieved."

DCLM Commercial Property's Darren Moorhouse acted for Marston's while Oliver Foster of Savills acted for Standard Life and Legal & General.

Law firm Addleshaws provided legal advice to Standard Life. Slaughter & May advised Legal & General.