Ei Group to sell 370 of its pubs and commercial properties

Drinks: Drinks
Other: Business

Ei Group, the largest pub company in the UK, is set to sell 370 of its properties to Tavern Propco.

The 370 assets, which include pubs and other commercial sites, represent a significant share of Ei Group’s portfolio of 412 properties.

Tavern Propco is a newly incorporated private company, owned by investment funds managed by New York-based Davidson Kempner Capital Management LP.

Simon Townsend, chief executive of Ei Group, said: ‘Throughout the sale process, we have been impressed with the commitment and speed of execution demonstrated by Davidson Kempner, a global institutional investment management firm with over US$31 billion in assets under management and a long track record of investing in real estate.’

The deal is expected to generate a gross profit of £348m, a significant proportion of which will be used to reduce the group’s outstanding £2 billion debt and provide immediate shareholder returns.

‘We are very pleased to have agreed the sale of the portfolio, which is in line with our strategy of delivering attractive and sustainable returns to shareholders by unlocking the embedded value and optimising the returns from every asset within the business,’ commented Townsend.

The sale will also provide the Ei Group with the necessary flexibility to invest and grow its core publican partnerships, managed operations and managed investments divisions.



About Author

Leave A Reply