UK pub chain Mitchells & Butlers said on Thursday that it is considering transferring its property assets into a real estate investment trust and added it has received a proposal from R20, the investment vehicle of UK-based property tycoon Robert Tchenguiz, regarding the new tax-efficient vehicle. The move is aimed at unlocking the value of M&B’s 2,000 pub sites, the pub chain said during the presentation of its annual results on Thursday.

UK pub chain Mitchells & Butlers said on Thursday that it is considering transferring its property assets into a real estate investment trust and added it has received a proposal from R20, the investment vehicle of UK-based property tycoon Robert Tchenguiz, regarding the new tax-efficient vehicle. The move is aimed at unlocking the value of M&B’s 2,000 pub sites, the pub chain said during the presentation of its annual results on Thursday.

Tchenguiz, who last August increased his stake in the pub group to almost 20%, is eying a 25% participation in the new vehicle. In a statement, M&B said that ‘the plan would offer shareholders the option to realise part of their investment in the property company for cash.’ The details of the new structure, as well as the ability to reorganise the debt and the implications for pensions, tax and legal structure are still under discussion. The pub chain added that its board is ‘giving serious consideration to this proposal’, as it posted losses of £48 mln (EUR 67 mln) this year.

The new plan comes follows the collapse in August of M&B's £4.5 bn property joint venture with Tchenguiz. The alliance was first agreed in May, but fell through in the wake of the credit crunch and worsened conditions in the debt market.