News Article Comments : Will Tchenguiz do another Laurel on M&B?

RE: Will Tchenguiz do another Laurel on M&B?

The big problem that exists with the objectives of Tchenquiz to free up the freeholds is that I do believe he looks on pubs as properties pure and simple. They are not. Pubs in a company such as M&B should be valued according to their retail profitability. The alternative use value does not exist unless a change of use has been agreed with the local planners. And so given that turnover is down, gross profit margins under fire and operating costs going up it follows that profit has gone down and will continue to go down. Recovery to current levels cannot reasonably be expected for two years and another three or four to get back to where they were last year. That makes gambling on REIT or the extraction of greater property value almost a certain loser.

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