Ei said today (11 January) it will sell 370 properties to Tavern Propco Limited, a newly incorporate private company owned by Davidson Kempner Capital Management.
The deal will leave Ei, formerly Enterprise Inns, with 42 commercial sites.
Ei says the money raised will be used to reduce its outstanding debt, allow it to consider more immediate returns to shareholders, and invest in growth across other areas of its estate.
It will also seek new sites to ‘rebuild’ its commercial property division.
"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,” says Simon Townsend, CEO of Ei Group.
“The portfolio is comprised of high quality assets which we believe are best suited to a free-of-tie, rent-only business model.”
Rothschild & Co acted as sole financial adviser to Ei Group on the deal.