Liquid real estate Issue 05
Mitchells & Butlers crashes out of opco/propco deal
Leading UK pub and restaurant group Mitchells & Butlers has been forced to shelve a £4.5 billion real estate joint venture and has been plunged into turmoil following a disastrous series of hedges that cost £274 million. As Liquid Real Estate went to press, the instability had prompted a bidding war for the company.
The joint venture was planned to be with R20, an investment company owned by property tycoon Robert Tchenguiz who, not coincidentally, owns 22.05% of Mitchells & Butlers. It would have reorganized Mitchells & Butlers to release value in the company’s property portfolio using the opco/propco structure.
Although the hedges were clearly the immediate cause for the scrapping of the property joint venture, market observers believe that the decision reflects a broader trend. In December, brewer and pub company Greene King also...
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