De Vere Group moves to jettison De Vere Venues

De Vere Group has hired Lazard to assist in the sale of its De Vere Venues arm, with the aim of bringing down its debts of £1.1 billion.

The venues business operates 30 centres, half of which are freeholds or long leaseholds with a total of 3,000 bedrooms, along with four non-residential venues. Seven properties are run as management contracts, joint ventures and franchises. A further 20 are either in the pipeline or under consideration.

With underlying cash generated of £27 million last year, and £28 million anticipated for this year, analysts have estimated a value for the business of between £280 million and £300 million.

Private equity buyers are expected to be interested in the conference aspect of the business. Most of its sales, about 80 per cent, are attributed to its large corporate clients, which are on long-term sole occupancy contracts and, to a lesser extent, weekend, short stays and weddings-related.

Following a successful disposal of De Vere Venues, a sale process for The Grand in Brighton will commence in early 2014. It will be on the market for £50 million.

De Vere Group is part-owned by Lloyds Banking Group after it took control through a £650 million debt-for-equity swap in 2010.

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