Enterprise Inns boss Ted Tuppen has stated that the company plans a "step-by-step" approach to selling pub freeholds at public auctions as it gears up to sell 14 pubs for as much as £20m at two auctions next month.
The company sold five pubs on a sale-and-leaseback at an auction last month, raising more than £13m.
The company thinks it could raise as much as £200m through public auctions while only adding £14m to its rental obligations on top of the existing £2.6m rental obligation arising from 181 short leasehold pubs in the estate.
He told City analysts this week: "I don't think we're selling them — it's a fine distinction but we're keeping 15 to 20% of the income stream."
He said the next batch of London pubs to be auctioned are a "similar geography" to the first group but had lower rents and therefore would fetch lower prices.
He indicated that Enterprise was taking advantage of a relatively small window in the market where bank interest rates for savers are very low.
Tuppen said that it might have 200 pubs in London where an auction route to raise cash was applicable but the company but it was likely the company would only sell 100 or so pubs through auction if this market remained strong.
Enterprise Inns has 1100 pubs within the M25 and this group has shown the most resilient trading with like-for-likes down 3% compared to 11% for pubs in the north.
Tuppen stressed to analysts that robust London area trading had been seen in "less salubrious" parts within the M25, not just places like Soho.
In it results announcement on Tuesday Enterprise said: "We own the freehold of 98% of our pubs, have 181 short leasehold properties and pay an annual leasehold rent of just £2.6m.
"We have a number of freehold pubs, predominantly in central London, which we believe present attractive investment opportunities for long term property investors.
"We believe that this market may provide an opportunity to raise additional funds in advance of our refinancing at attractive long term rates, whilst retaining operational management and an ongoing income stream from the pubs concerned."