Mitchells & Butlers to follow Enterprise Inns and convert to REIT?

19 May 2008
Mitchells & Butlers to follow Enterprise Inns and convert to REIT?

Speculation is mounting that Mitchells & Butlers will outline its interest in following rival Enterprise Inns and switching to real estate investment trust (REIT) status.

Tomorrow the embattled All Bar One and Harvester owner will unveil the results of its strategic review of the business.

The review was initiated in January after it lost £274m over a botched joint property-venture hedge.

According to today's Financial Times M&B will also appoint two representatives of investor Robert Tchenguiz to its board on Tuesday.

Tchenguiz was behind last year's proposed joint property-venture that fell through due to the credit crunch.

Earlier this month Enterprise Inns was given permission by HM Revenue and Customs to convert to REIT status after negotiating its eligibility.

A REIT allows companies to invest in property that generates income from a fixed commercial rent without paying corporation tax.

Read the full article in the Financial Times here >>

Enterprise wins REIT status >>

REIT decision could transform pub sector >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

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