Ei Group, the UK's largest pub owner and operator, has agreed to divest 370 real estate assets to newly incorporated firm Tavern Propco for £348 mln (€388 mln).
The deal represents the majority of the group's real estate portfolio, comprising 412 assets. Ei Group said that the sale was in line with the properties' net book value, representing a 13x multiple of earnings.
Tavern Propco is owned by investment funds managed and advised by Davidson Kempner Capital Management, through intermediate holding companies.
The assets include public houses and other commercial properties.
The proceeds from the transaction will go towards reducing the group's outstanding debt, Ei said, to meet medium term net debt targets.
Tavern has paid a deposit of £33.66 mln which will be refundable only if shareholders fail to approve the sale.
