Abbey National is poised to sell its 730 high street branches as well as administrative offices and call centres, to Mapeley, a company backed by George Soros, Fortress Investments Group and Delancey Estates.

Abbey National will sell all its property assets estimated by property sources to be worth �500 million to Mapeley and then lease them back on flexible terms.

Mapeley chief executive Robin Priest was tight-lipped on the details, but said: It was attractive to us because Abbey National is a very strong covenant. He also said that the balance between freeholds and leaseholds helped to make the deal stack up.

These factors would limit the number of retailers who could adopt the approach, but Priest said that in principle there was no reason why mainstream retailers should not also be able to realise the value of their property assets.

Mapeley outbid Morgan Stanley Real Estate Fund and London & Regional Properties. Ernst & Young Real Estate Group advised Abbey National.

Retail Week 15/09/2000