Future of pub under spotlight in sale proposal
The pub has been described as a poor-performing asset despite its longstanding place in the community
A council-owned pub that brings in just £135 a year in rent could soon be sold off.
Councillors are being asked to approve the sale of Gosport Borough Council’s freehold interest in the White Horse Inn to Admiral Taverns for £140,000.
It comes after council officers concluded it is a poor-performing asset despite its longstanding place in the community.
A report, which will go before members of the policy and organisation board on Wednesday, states that the local authority only receives £135 in rent from the pub on Nobes Avenue. It adds that the council’s freehold interest is worth about £90,000, meaning the £140,000 offer represents a “significant premium” above its estimated value.
A spokesperson told the Local Democracy Reporting Service that the land has been owned by the council for “many years” and the 99-year lease was granted to the original tenant, who built the pub, in 1954.
They added: “The tenant currently pays a ground rent of £135 a year because of the terms of that original agreement. In return for the reduced rent, the tenant has been responsible for paying all the costs of building, maintaining and running the property.”
The council said it had considered altering the lease, but that Admiral Taverns wanted to buy the freehold.
The spokesperson said: “While the council cannot guarantee how the property may be used in the future, the company has said it wants to continue investing in the building and support the pub’s long-term future.”
The council has also negotiated a clause that would see it receive a share of any increase in the site’s value if it is redeveloped within the next 15 years.
Under the agreement, the council would receive 15 per cent of any uplift in value.
Meanwhile, Admiral Taverns said it is a “champion” of pubs which “support their community”.
A spokesperson said the aim is to maintain the White Horse Inn as a hub at the centre of the community, adding that plans for a garden refurbishment are already in motion.
They said: “This will provide even more facilities for the community.”
A decision will be made by councillors at the meeting on Wednesday, September 30.