Enterprise Inns, the UK’s second-biggest pub owner, is exploring the possibility of converting to a REIT

Enterprise, which owns around 7,500, or 12%, of Britain’s pubs, said this week in its half-year results that it had asked its advisers whether it ‘could meet the qualifying criteria for admission as a REIT without the need for material restructuring of the business and whether such a conversion would be in the best long-term interests of our shareholders’.

Converting to a REIT would allow Enterprise to retain control of its freehold estate and would cost an estimated £100m, which is equivalent to 2% of the value of its properties.

The other two options for the company, which are less attractive, would be sell the entire estate to a REIT – effectively a sale and leaseback – or to sell part of the estate to a REIT.