Buyers circle Ei’s £350m pubs portfolio on the market

The boss of Ei on Tuesday said he has been “encouraged” by the number of investors eyeing a purchase of the pubs giant’s £350 million commercial property arm.

Simon Townsend first confirmed in September that Rothschild had been hired to look at auctioning off 376 watering holes it owns the freehold of but does not operate.

He today said: “A sale would allow us to concentrate on our core estate. I have been reassured by the level of interest we have received.”

Ei, formerly Enterprise Inns, saw revenues rise 7% to £695 million in the year to September 30. Pre-tax profits rose to £87 million from £58 million.

During the period it benefited from hot weather and the FIFA World Cup.

Townsend said: “Our strategic plan is on track and we remain focussed on driving long-term growth in shareholder value.”

Although he was upbeat, the firm warned of expected higher costs. Like rivals, it is grappling with larger business rates and wage bills.