Vultures circle Stonegate pubs portfolio

Vulture funds are circling Stonegate’s portfolio of 1,000 British pubs. Cerberus and Morgan Stanley Real Estate are among a clutch of distressed-debt investors to have submitted bids for almost a quarter of the pub estate owned by Stonegate, said City sources. Stonegate is looking to spin off unencumbered pubs into a new special-purpose vehicle and raise £600m in new debt to help pay down nearly £4bn of borrowings – half of which is due to be repaid or refinanced by July 2025. Fortress Investments, the owner of Punch Taverns, and hedge funds Oaktree Capital Management, Sculptor Capital Management and Avenue Capital are understood to have run a rule over the pub portfolio. Formed in 2010, Stonegate is the UK’s biggest pub operator, with more than 4,500 sites, most of which are unbranded. Its branded sites include Popworld, Slug & Lettuce and Be At One. The Times (£)