Vine dining 17 January 2020 Andrew McKenzie and the 2019 Taittinger UK Sommelier of the Year Romain Bourger on the Vineyard’s winning wine formula
In this week's issue... Vine dining Andrew McKenzie and the 2019 Taittinger UK Sommelier of the Year Romain Bourger on the Vineyard’s winning wine formula
Read More
Search

Mitchells & Butlers unveils REIT plans

20 May 2008 by
Mitchells & Butlers unveils REIT plans

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.

See Caterersearch's REIT news round-up for more >>

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

REIT decision could transform pub sector >>

Board at Mitchells & Butlers under fire after £274m loss >>

Caterer Blog: Hedging and Mitchells & Butlers explained >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

The Caterer Blog Catch up with more news and gossip on the Caterer Blog here
Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!