Ei Group to sell 370 of its pubs and commercial properties

Jacopo Mazzeo

Jacopo Mazzeo

14 January 2019

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.

 

 

Related articles

News

Enterprise changes name to Ei Group

Enterprise Inns today used its AGM trading update to announce the company has changed its name to Ei Group plc.According to a statement released by th

News

Ei Group takes on coffee shops with launch of Beerista coffee

Ei Group, which represents over 4,000 pubs in the UK, is looking to grab a share of the lucrative local coffee market with the launch of its Beerista

Beer & Cider

Ei partners with boutique hostel and pub operator PubLove

Pubco Ei Group – formerly known as Enterprise Inns – is to partner with boutique hostel and historic pub operator PubLove, to jointly operate five sit

Beer & Cider

Draft House acquires Grand Union Group and six London pubs

In a move no doubt aimed at pulling Londoners out of gin palaces and back to the humble pub, the Draft House group has secured a flagship London venue