Pub group Enterprise Inns has agreed a £42.6 million sale and leaseback deal for 29 of its pubs .

Solihull-based Enterprise (ETI) has made the agreement, which relates to properties in London, with MPG Pubs LP.

The properties will be leased back to Enterprise Inns for 35 years for a total cash consideration of £42.6 million.

The sale proceeds of the pubs being disposed of are above the total book value of £34 million, according to the company.

Enterprise said in a statement that the cash raised would go towards paying off its debt – which stands at more than £3 million.

It said: “This sale and leaseback is in line with Enterprise Inns’ stated objective to seek efficient sources of capital, and the disposal proceeds will be used for debt repayment.”