Robert Tchenguiz, through his investment vehicle R20, is on the verge of completing a £4.5b property joint venture with Mitchells & Butlers (M&B).

The deal would see the sale and lease back of the pub operators property and allow M&B to return up to £1b to shareholders, according to reports in today’s Times.

It will see Tchenguiz, who has a 14% stake in M&B after a failed buy-out bid last year, place at least 1,500 pubs and restaurants into a 50-50 joint venture with the pub company.

Technguiz has put M&B under increasing pressure to spin off their property into a real estate investment trust (REIT).

M&B has resisted this, claiming REITs were “as yet insufficiently developed” as recently as May.

Shares in M&B fell by 19.5p this morning to 872p following the news.

Read the full article in The Times here >>

Read more on REITs here >>

Pub operator Mitchells & Butlers rules out REIT conversion for now >>

Mitchells & Butlers confirms property deal speculation >>

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