has OVPL considered charging a levy on wet sales to help build a reserve at a greater rate than forecast to 2028. It doesn’t seem unreasonable to charge a fee of 10% or more of wet turnover as this is linked to the success of the community pub.
I’m not clear how OVPL could cover the costs of any voids or the risk of having to over the pub on a tenancy at will on a heavily discounted rate. I’ve seen the pub advertised at about £26k per year but there is no indication of wet sales or barrelage figures. As a comparison the Ickford community pub is also being marketed but does include these figures
This would give some insight as to whether the OVPL is currently “washing its face” or if this share offering will shortly be followed up with a further share offering to keep the pub open.
At what point does the Parish Council step in and cover the lease costs etc.
I’m interested in investing but would appreciate some clarity on the financials of the share offering.
OVPL has deliberated on imposing a levy on wet sales, turnover or profits. After extensive discussions, we decided against this approach. This model was previously employed by Punch the past landlords, and resulted in a high turnover of tenants.
Our goal is to partner with the best publican who can address our community’s needs. We believe that publicans, as business people, deserve the opportunity to earn a reasonable profit.
The tenancy cost isn’t significantly discounted, but we believe is a commercial rent. We conducted thorough research to set a competitive rent level to attract top-tier candidates while maintaining financial balance.
OVPL’s role isn’t to run the pub, lease the building, and safeguard the community’s interests. We aim to ensure the village has a pub that fulfills as many community objectives as possible, acknowledging that not possible to satisfy all of the people all of the time.
You can find comprehensive financial projections in our prospectus at this link.
The tenant’s rent will increase over the next fifty years.
Whereas the PWL repayment level is fixed, thus creating an ever-increasing fund to support the pub and other community activities and maybe even potentially pay dividends to the shareholder over time, as described in the prospectus.