Public houses present new development opportunities

It has been announced today that 50 pubs are closing a week according to the British Beer and Pub Association. The West Midlands is said to be the worst affected region.

An increasing number of people are opting to spend their evenings in as opposed to going down to the local pub as a result of the recent belt-tightening recession. In turn, this has sadly led to the demise of many public houses; the lack of business has forced many to close, and several have now even fallen into a state of disrepair. Still according to Knight Frank, these derelict sites present some real opportunities. They make superb development opportunities, especially for housing developers, as generally these pubs are in great locations at the heart of a village or community, and usually on a main road so easily accessible.

Knight Frank has become involved in an increasing number of acquisition and disposal deals on behalf of the brewery trade in the Midlands especially.

Golden Cross, a public house on a half acre site on Metchley Lane, opposite the Queen Elizabeth Hospital in Selly Oak, Birmingham, is one example which used to serve the hospital as a pub but has closed as a result of the current climate. It has planning granted for 50 units, and it is suggested it would especially suit student accommodation for training nurses and junior doctors, with potential to provide 46 double bedrooms and four twin studios. Knight Frank is marketing this site with a guide price of £800,000 for the freehold.

In Rugeley, Staffordshire, the former ‘Pear Tree Inn’, which is set in 0.732 acres, has outline planning consent for redevelopment into 14 three bedroom houses. Knight Frank is inviting offers in the region of £300,000 for the site, which represents good value considering the excellent location and fact it has a car park as well.

Another great opportunity is on the edge of Widemarsh Common in Hereford, where the site of the former ‘Sportsman Pub’ which was damaged in a fire, has come to the market. This former pub site extends to approximately 0.767 acres with potential for part-conversion / part new-build on the land, with planning consent granted for the creation of five bedsits and five flats. Knight Frank is inviting offers in the region of £650,000 for this freehold development opportunity.

David Fenton, partner, Knight Frank, commented: “As so many pubs have seen their regular trade vanish during the economic downturn, these sites are being replaced with more lucrative development opportunities such as housing developments, retirement or care homes or much needed student accommodation if they are close to a University or hospital as is the case with the Golden Cross. Meanwhile where sites have large car parks they could also work well as retail opportunities for smaller supermarket chains, and those with both parking and gardens are especially attractive for housing developers.

“Planners have been very supportive and local councils have encouraged the development of these brownfield land sites over other greenfield sites. Whilst this strategy has been developed in a bid to meet brownfield targets, it is also apparent that local authorities are largely supportive of schemes that will herald the redevelopment and revitalisation of sites which have fallen into disrepair and become an eyesore. By regenerating and redeveloping a site it will benefit the area as a whole.”