Mitchells & Butlers (M&B) has said it intends to puts its property assets into a real estate investment trust (REIT), but only when market conditions are suitable.
The decision is the highlight of a strategic review into the All Bar One and Harvester owner's business's future, published today.
As part of the review, M&B has also outlined plans for investment tycoon Robert Tchenguiz to have a more hands-on approach to the business he once tried to buy.
Tim Smalley and Aaron Brown, of Tchenguiz's investment vehicle R20, will now join M&B as non-executive directors on 20 June.
Both will transfer to the M&B REIT when the property assets are separated from the pub operating company.
Smalley and Brown can only remain on the board if R20 has an investment of more than 25% in M&B. Should it fall below that level, but remain above 15% only one of the pair shall remain.
The M&B review was initiated in January after the pub company lost £274m over a botched joint property-venture hedge with Tchenguiz, who is a major shareholder in the company.
Its decision to adopt REIT status comes after rival Enterprise Inns made history by winning permission from HM Revenue and Customs to convert to REIT status earlier this month.
By Christopher Walton
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