10% Pub Co.
We have developed a tenancy framework which is a great alternative to traditional pub company models. 10% Pub Co gives tenants and lease holders much more freedom. It allows freedom for the tenant to focus on developing their business, alongside providing strong and consistent returns for the free holder.
10% Pub Co. provide Self Invested Pension Plan (SIPP), Small Self-Administered Pension Scheme (SSAS), private investors and venture capitalists a reliable and structured framework to support opportunities within the pub and restaurant sector. Helping to attract top class tenants for your properties.
This structure gives more longevity to clients and tenants feel more secure for longer. LSS Group provide exceptional business support within the package consisting of quarterly visits and open book accounting. We will carry out inspections of the property and provide professional advice based on our own vast experience in this field.
Typical Framework Example
We will come and look at the property and assess its overall business potential, whether it is trading or closed for business. We will suggest an achievable average turnover for the business with an average standard of management in-situ. For this example, we’ll assume a business could turnover an average of £500k/year. Therefore, the owner of the property should expect to see a 10% rental return (£50k), we would then advise that the purchase price should be in the region of £500k. A structure is then designed to find the right tenant for the property. Once we find a suitable lease/tenant, agreements are put in place where a minimum rental return would be £50k per year with 10% turnover rent applicable to any turnover above £500k; hence “10% Pub Co.”
Of course, these are our guidelines and what we suggest our clients work to. We believe that it is a fair and sustainable model for the current tenanted pub market.
If you have an existing property portfolio, why not consider transferring its management to LSS Group and start reaping the benefits under our 10% Pub Co. model.