Whitbread, the leisure group, is to sell its 45-strong TGI Friday’s restaurant business for a total of £70.4m.
TGI Friday’s UK, a joint venture between Carlson Restaurants and ABN AMRO Capital, will buy the business and 30 of the sites, while the remaining 15 restaurants will be sold to British Land.
British Land is paying £48.37m for the 15 sites, which are all freehold, while the joint venture is paying £22.03m for the 30 leasehold sites and the business.
The joint venture will take 25-year leases from British Land for each of the properties.
Whitbread has franchised the brand from the Carlson for the last 20 years.
The majority of the consideration of £70.4m will be paid in cash on completion, which is expected to take place in March 2007.
The remainder will be paid on receipt of consents required for the transfer of certain properties.
Whitbread will initially use the proceeds from the transaction to pay down debt.
Alan Parker, chief executive of Whitbread, said: “This sale marks the completion of the review of our restaurants business announced last year.
“We are now a leaner more focused group, concentrating our management and capital on those businesses where we have owned brands with leading positions and strong growth prospects.”
