UK pub chain Mitchells & Butlers (M&B) has said it will convert to a real estate investment trust (REIT) as soon as market conditions are 'suitable.' The company said the move will 'more fully capture the value of its property estate'. M&B, which owns 2,000 pubs across the UK, added that conditions in the financial markets preclude switching to a REIT now.
UK pub chain Mitchells & Butlers (M&B) has said it will convert to a real estate investment trust (REIT) as soon as market conditions are 'suitable.' The company said the move will 'more fully capture the value of its property estate'. M&B, which owns 2,000 pubs across the UK, added that conditions in the financial markets preclude switching to a REIT now.
'The comprehensive strategic review has explored all options for creating value. The conclusions reaffirm our commitment to capturing the value of the property for shareholders. We will also focus on accelerating our trading out-performance and pursuing consolidation in managed pubs,' said CEO Tim Clarke.
Enterprise Inn, with 7,700 pubs in the UK, is set to become first pub group to convert to the REIT regime. The group was given the go-ahead from HM Revenue & Customs at the start of May, but Enterprise Inn said conversion would take several months.
