Save The Red Lion Campaign has now past its second significant milestone! It has now been awarded a £10,000 grant from a government body which it will use to undertake the next set of important work that it needs to do in order to move towards making an offer for the Red Lion and completing its business plan for a future Red Lion business.
In preparation for making an offer to buy the Red Lion the Campaign has been working on developing a viable business plan. Until now the Campaign has been restricted in what progress it can make in detailing its business plan as it has yet to find out how much it believes the pub is actually worth, and how much it would cost to repair and upgrade the building. These are key pieces of financial information that the Campaign now requires.
The Campaign is pleased to announce that it can now progress to having the pub professionally surveyed and valued. It can now undertake this important set of activities as it has successfully applied for, and had approved, a pre-feasibility grant of £10,000 from the government funded Social Investment Board.
The approval of this grant is a significant second milestone for the Campaign, following on from it having successfully persuaded East Devon District Council to list the Red Lion as an Asset of Community Value.
The grant, will allow the Campaign to undertake pre-feasibility work in order to engage professional advisers to, amongst other things –
Ø have the pub valued.
Ø obtain a full building condition survey, including undertaking technical due diligence.
Ø cost the work required to repair and upgrade the pub.
Ø register an Industrial & Provident Society limited company to purchase and own the pub.
The Campaign is anticipating that within the next fortnight it will obtain registration from the Financial Conduct Authority of its Industrial & Provident Society limited company.
Fred Burnett, Chair of Save The Red Lion Campaign, said “Receiving this significant grant from the government’s Social Investment Board comes just at the right time for the Campaign. We have recently opened up a dialogue with the pub’s owner, Punch Taverns, and work is progressing well on developing a business plan for a future Red Lion business. However, to complete this, the Campaign needs to know what the pub is realistically worth, as opposed to what the owner wants for it, as well as how much money would need to be spent on repairing and upgrading the building.
The Campaign has received the maximum pre-feasibility grant that the Social Investment Board can award which I believe demonstrates the strength of the case that the Campaign made for this sizeable financial support. We can now move our work up a gear or two”.
The next couple of months will see the Campaign fully understanding what the financial outlook for a future Red Lion business will look like.