BREWER and pub operator Scottish & Newcastle has agreed a £260m deal to sell 456 of its leased pubs to Royal Bank of Scotland.

The deal follows two sales of its leased pubs to RBS over the last two years, and brings the number of its pubs sold to the bank to 1,075.

S&N will continue to manage the pub properties, which are spread around the UK, while RBoS will pump in up to £5.5m a year of capital for development and refurbishment.

Following the sale it will retain ownership of less than 50 leased pubs.