UK pub owner Greene King is planning to launch a property company this year in a move aimed at 'unlocking substantial extra value from its quality property estate'. The pub group added the new real estate company, which will own 35%, or some 872 of its pubs, is currently looking for a venture partner. The new unit could capitalise on recent changes to UK real estate investment trust legislation and become the first pub owner to convert into a REIT. The UK facilitated the launch of real estate investment trusts (REITs) from January this year, and pub chains' shares have been surging since then on speculation that companies will allocate their real estate in the new tax-efficient structure.

UK pub owner Greene King is planning to launch a property company this year in a move aimed at 'unlocking substantial extra value from its quality property estate'. The pub group added the new real estate company, which will own 35%, or some 872 of its pubs, is currently looking for a venture partner. The new unit could capitalise on recent changes to UK real estate investment trust legislation and become the first pub owner to convert into a REIT. The UK facilitated the launch of real estate investment trusts (REITs) from January this year, and pub chains' shares have been surging since then on speculation that companies will allocate their real estate in the new tax-efficient structure.

Mitchells & Butlers (M&B), the owner of the O'Neill's pub chain, said in late May it was to transfer most of its £5.5 bn property into a 50/50 joint venture with billionaire property tycoon Robert Tchenguiz. M&B added it was planning to split the management of its freehold pubs into an operating unit, that runs the pubs themselves, and a property unit, that looks after the real estate business. Tchenguiz, which owns about 16% of M&B, has reportedly been pushing for the move and was looking to repeat it with Sainsbury, of which it owns a 11% stake. Last April, the Iranian-born entrepreneur also snapped up La Tasca, the Spanish-themed restaurant chain, beating Blackstone's bid with his £104 mln offer.