Enterprise Inns could raise as much as £200m by selling the freeholds of up to 100 pubs at public auctions if an auction trial this month is successful, writes Paul Charity. The company is trialing the sale of seven freeholds at an Allsops auction on 15 October, hoping to raise £14.7m. The company is offering private investors a 35-year lease with itself as tenant on the head-lease, subject to a five-yearly rent review and no indexation. Chief executive Ted Tuppen said rents on offer to investors account for between 80 and 90% of each pub’s total ebidta. “We’ve taken advice on the rent that’s appropriate,” he told City analysts. Tuppen said that the auction had already seen a great deal of interest from private individuals, who are not earning much interest on their money in the bank and who would be receiving a yield of 6% on their investment in buying an Enterprise freehold. Enterprise Inns would be receiving a sale price of 14 to 15 times ebitda if pubs sell for their guide price. The company currently has just 181 short leasehold pubs within the estate, creating a rent obligation for Enterprise of £2.6m per annum.