Mapeley

Bank's secret 'Project Columbus' will trigger complex sale-and-leaseback on entire 6m sq. ft UK estate By Angela Jameson and Giles Barrie.

Banking giant Abbey National has drawn up secret plans for a complex sale-and-leaseback on its entire estate as it becomes the latest corporate to shake up its property portfolio. The bank, which occupies 557.413 sq. m (6m sq. ft) of space and owns a � 460 m freehold portfolio, last Friday invited expressions of interest from between six and 10 bidders for the huge deal. Known internally as 'Project Columbus', the winning bidder will take over all Abbey's leasehold and freehold interests, leasing them back to the bank at an index-linked rent. Computer giant ICL, Lloyds TSB, JP Morgan and Boots are all working on similarly ambitious deals, but banking sources said Abbey's is the biggest yet.
Documents sent to bidders show how much space Abbey forecasts it needs over 20 years, with the bank predicting that it will vacate properties in eight phases over this period. It is up to bidders to submit an offer for ownership of the portfolio based on what it expects to receive back from Abbey, which wants to complete the deal by the end of the year. Larry Hannam, Abbey National's manager of property operations, said:' I am constantly looking at ways to improve the performance of our property holdings and their alignment with our business strategy. This is an extension of that.'
Despite the threat that Abbey will vacate some of the portfolio, bidders are attracted to the deal because they believe many of the bank's 1400 property interests could easily be converted to other uses. Also, Abbey's covenant is so strong that the eventual owner will be able to securitise the rent. Likely bidders declined to comment, but Mapeley, backed by US bank Morgan Stanley; Citex, backed by Donaldson Lufkin & Jenrette; Servus, backed Nomura and Trillium, backed by Goldman Sachs' Whitehall Real Estate fund, are in the running with four others, believed to include listed property companies. Abbey is advised by Ernst & Young and Nelson Bakewell.

The BBC will advertise a scaled-down version of its own property PFI on 11 April.



Abbey gets new real estate habit Bank's secret 'Project Columbus' will trigger complex sale-and-leaseback on entire 6m sq. ft UK estate By Angela Jameson and Giles Barrie. Banking giant Abbey National has drawn up secret plans for a complex sale-and-leaseback on its entire estate as it becomes the latest corporate to shake up its property portfolio. The bank, which occupies 557.413 sq. m (6m sq. ft) of space and owns a � 460 m freehold portfolio, last Friday invited expressions of interest from between six and 10 bidders for the huge deal. Known internally as 'Project Columbus', the winning bidder will take over all Abbey's leasehold and freehold interests, leasing them back to the bank at an index-linked rent. Computer giant ICL, Lloyds TSB, JP Morgan and Boots are all working on similarly ambitious deals, but banking sources said Abbey's is the biggest yet. Documents sent to bidders show how much space Abbey forecasts it needs over 20 years, with the bank predicting that it will vacate properties in eight phases over this period. It is up to bidders to submit an offer for ownership of the portfolio based on what it expects to receive back from Abbey, which wants to complete the deal by the end of the year. Larry Hannam, Abbey National's manager of property operations, said:' I am constantly looking at ways to improve the performance of our property holdings and their alignment with our business strategy. This is an extension of that.' Despite the threat that Abbey will vacate some of the portfolio, bidders are attracted to the deal because they believe many of the bank's 1400 property interests could easily be converted to other uses. Also, Abbey's covenant is so strong that the eventual owner will be able to securitise the rent. Likely bidders declined to comment, but Mapeley, backed by US bank Morgan Stanley; Citex, backed by Donaldson Lufkin & Jenrette; Servus, backed Nomura and Trillium, backed by Goldman Sachs' Whitehall Real Estate fund, are in the running with four others, believed to include listed property companies. Abbey is advised by Ernst & Young and Nelson Bakewell. The BBC will advertise a scaled-down version of its own property PFI on 11 April.