Aprirose, the real estate investment company, is to acquire a 73-strong portfolio of pubs from Mitchells & Butlers (M&B), which it will use to launch a new pub group, MCA has learnt.

The portfolio, which is part of a 77-strong package that was placed on the market by M&B last November, will be named Milton Pubs and Taverns. It includes 65 freehold and eight leasehold properties located across the UK in England, Scotland and Wales.

The acquisition of the 73 assets will make Aprirose the eleventh largest managed pub group in the UK. Tenants within Aprirose’s current pub portfolio include Greene King, Marston’s and Punch Taverns.

The value of the deal was undisclosed, however, in its most recent half-year update M&B, said that during the period, a group of properties have been classified as held for sale, which at 8 April 2017 had a net book value of £43m.

The deal mark Aprirose’s first management contract undertaken in the sector.

The company has appointed LT Management Services (LTM) to manage the assets. LTM currently has more than 1,000 pubs, clubs and other assets under management.

Manish Gudka, chief executive at Aprirose, said: “The acquisition of the Milton Pubs and Taverns portfolio from M&B represents an opportunity for us to take a more hands on approach to asset management. We look forward to working with LTM, who are a leading operator in this space.

“The acquisition is a strong investment for our investors, with locations stretching throughout the UK. Following the disposal of 23 pubs to various institutions at the beginning of this year, we are pleased to confirm our commitment to such an interesting sector. As pubco’s seek to rationalise their portfolios in the evolving F&B sector it presents an opportunity for us to create a more bespoke offering and to drive returns for our investors.

“We continue to find the best assets to add to our diverse £1.2 billion real estate portfolio, and to explore the right opportunities for our investors in today’s post-referendum market.”

Phil Urban, M&B chief executive, said: “One of our business priorities is to rebalance our estate to deliver greater shareholder value. Disposing of these sites means we are positioned to extract this value and will continue to move forward focusing on our key strategic priorities across our core business. We continue to focus on obtaining the best returns from each of our assets and position our brands to continue to generate greater shareholder value.”

M&B was advised by Savills and Eversheds Sutherland.