ABBEY National expects to boost profits by around �70m by selling its entire branch network for �457m to Mapeley Columbus, a property group connected with billionaire currency speculator George Soros.

The deal will make Soros, who forced the UK out of the European exchange rate mechanism in 1992, one of Britain's biggest property players.

Abbey will lease back its 1,300 branches, including its headquarters in London's Baker Street, for terms varying from three to 20 years.

The arrangement, the first of its kind by a British bank, will give it greater flexibility to shut down little-used, or unprofitable, outlets.

Ian Harley, Abbey's chief executive, who has recently been the butt of a City whispering campaign, is keen to squeeze more profit out of branches.

Costa Coffee is to open 50 cafes in branches in the next two years. Carphone Warehouse has a similar arrangement to sell mobile phones on Abbey premises, though its boss Charles Dunstone is a director of the Halifax.
Abbey rose 15p to 880p, still way below their peak of 1601p.

The deal is a major boost to Soros' stature on the UK property scene. Mapeley is owned by Soros Real Estate Partners, Fortress Investment Group and Delancey Estates, a vehicle of Jamie Ritblat, son of property mogul John. It has already won a �2bn contract to manage Inland Revenue properties and is bidding for the BBC's �403m portfolio.

DAILY MAIL 20/10/2000