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 pulled a planned opco/propco split as a result of the credit crunch and in January, French supermarket group Carrefour scrapped plans to list its €20 billion property assets.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
