A new chapter is underway for more than 80 former Brains pubs across south and west Wales, as a significant £12 million deal has shifted their leasehold ownership to Brew Propco, signalling fresh momentum in the Welsh hospitality sector. The transaction, which is expected to bolster local economies and safeguard community spaces, was made possible with financial assistance from Cardiff-based Hodge Bank.
Brew Propco, now the majority leaseholder, is under the controlling interest of Westbrooke Private Capital, a prominent private equity firm. This acquisition was sealed with the support of a substantial commercial loan from Hodge Bank, reflecting confidence in the resilience and future of the regional pub industry. The leasehold purchase was from Cerberus Capital Management, the entity retaining the freehold interests. The deal was brokered with the expertise of Cameron Hayes from the capital advisory specialists Arc and Co.
The collection of pubs, which stretch throughout south and west Wales, have been managed by Marston’s—the UK’s fifth-largest pub operator—since 2020, following the transfer of operational control from SA Brain & Co. That agreement, initially established on a 25-year lease, aimed to ensure the continuity of pub operations despite the challenges posed in recent years by shifts in the hospitality market.
Over the last year, Marston’s has redefined its strategy, placing a sharper focus on the core management and operation of pubs. This follows the firm’s exit from the Carlsberg Marston’s Brewing Company joint venture last year, a move which has reportedly strengthened its financial foundation. Marston’s returned robust results over the most recent six-month period ending in March, bucking some of the more pessimistic trends facing parts of the sector.
In the wider context, the British Beer and Pub Association estimates that pubs collectively inject over £26 billion into the UK’s economy every year. The sector’s resilience has been especially notable in the wake of the pandemic, with many establishments reporting a gradual but encouraging recovery both in trade and community support.
Commenting on the deal, Gareth Davies, Hodge Bank’s Senior Business Development Manager for Real Estate Finance, highlighted the significance of investing in Welsh hospitality. “Supporting the acquisition of these pubs demonstrates our enduring commitment to the leisure sector and to businesses rooted here in Wales, our home and our heartland,” Davies remarked. He further emphasised the essential role pubs maintain within communities, as gathering points that underpin the social and economic vitality of towns and cities.
James Lightbody, Head of Real Estate at Westbrooke Private Capital, expressed his satisfaction at bringing the deal to completion, noting that Westbrooke has been actively involved with this group of pubs since their initial transfer from Brains in 2020. “This partnership with Hodge Bank enables us to continue supporting this vital sector, and ensures that these pubs, which serve as the hearts of their localities, can keep thriving,” said Lightbody.
Financial experts note that this transaction illustrates both the ongoing investor interest in well-structured hospitality assets and the importance industry insiders place on maintaining robust local pub networks. With community spaces increasingly recognised as vital to mental health, cohesion, and regional economies, deals such as this are being watched closely by other market participants.
As the dust settles on the acquisition, attention now turns to how Brew Propco and Marston’s will steer these pubs in the coming years. For many, the hope is that with new backing and a continued strong operational partner, these public houses will not just survive, but flourish—serving future generations across Wales.