Red Oak Taverns secures £110m loan towards expansion

Red Oak Taverns has secured a £110m, six-year loan to refinance its existing debt and drive growth plans.

Some £50m of the loan will serve as an acquisition facility to drive the purchase of new assets and investment, including capital expenditure into the existing estate.

Founded in 2011 by executive chairman Aaron Brown and chief executive Mark Grunnell, the independent pub company has grown to operate 208 primarily leased and tenanted pubs across the UK over the past decade, expanding from its initial portfolio of 32 pubs.

The company completed five acquisitions totalling 34 pubs during lockdown in 2021.

Grunnell, said: “We are pleased to have secured this facility and it has been a pleasure to work with Excellion. Our new financing provides us with the capital to continue to expand our portfolio and helps us along the next stage of our journey.”

Ashley Marks, managing director of Excellion Capital, a boutique investment and advisory firm focussed on real estate and asset-backed investments, which arranged the loan, added: “It was a pleasure working with Red Oak, who really impressed us both with the quality of their management team and their operations, especially given the challenges posed by the pandemic.

“Red Oak has proved to be an extremely strong operator in a challenging industry, and we’re glad to assist them in a transaction which will help turbocharge their next stage of growth.”