VCT News
Beringea sells Nectar Taverns - ProVen VCTs achieve 35% ROI
3 October 2005 - Private equity company Beringea announces the sale of Nectar Taverns ("Nectar"), a leading operator of community pubs, to Lincoln Capital Limited, a newly formed private investment company. Beringea's ProVen VCT and ProVen Growth & Income VCT have realised a total return of 2.5 times their original investment from the sale.
Beringea, the largest institutional investor in Nectar Taverns, invested £1.3m in the pub chain in August 2002 through its ProVen and ProVen Growth & Income VCTs. It received syndicate support from several other VCTs including Artemis, Electra Kingsway and Unicorn AIM but was subsequently the only company to take a seat on the board. The investment generated an IRR of 35% for ProVen VCT and ProVen Growth & Income VCT.
Founded in 2002, Nectar is a leading acquirer, developer and operator of unbranded community pubs in the North West of England and Wales. Nectar's estate comprises 29 outlets, 28 of which are freehold. Each of Nectar's outlets is characterized by a number of key features including value for money pricing, emphasis on leading draught ale / lager brands, big screen sport and comfortable surroundings. The Nectar Taverns' outlets are managed by Honeycombe Leisure plc, the AIM-listed pub owner and operator. Immediately following completion of the transaction, Honeycombe Leisure will enter into long-term lease arrangements with Lincoln Capital Limited for each of the pubs comprising the Nectar Taverns estate.
Commenting on the deal, Trevor Hope, Non-Executive Director of Nectar Taverns and Investment Director of Beringea said: "This has been a great exit for Beringea and we are very pleased with returns generated on this investment. Nectar has made significant progress since we created the company three years ago and since then, it has developed a strong and highly marketable strategy. This, alongside the excellent operational support provided by Honeycombe Leisure in acquiring sites and managing the estate, has proved a winning combination. We are delighted with the company's performance to date and believe that it has excellent future prospects as part of Lincoln Capital."
About Beringea
Beringea is an international venture capital firm with offices in London and Detroit. In the UK Beringea manages ProVen VCT, ProVen Health VCT, ProVen Growth & Income VCT and Global Rights Fund II. Beringea launched its first VCT in 1996, making it one of the most experienced VCT managers in the UK. ProVen Growth & Income and ProVen VCT are highest performing VCTs of their launch years, respectively, according to www.taxefficientreview.com. For more information please visit www.provenvcts.co.uk.