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UK: ABBEY NATIONAL - MAPELEY IS PREFERRED BIDDER IN PROPERTY DEAL
DOW JONES INTERNATIONAL NEWS
6 Sep 2000
U.K. mortgage bank Abbey National PLC (ANBA) said Wednesday that Mapeley, a company backed by Fortress Investment Group, George Soros' Soros Real Estate Partners and Delancey Estates PLC (U.DYE), is the preferred bidder for its entire property portfolio.
Terms have been agreed in principle for the sale and leaseback deal through the bank's lead advisors, Ernst & Young Real Estate Group, Abbey said in a statement. Financial details weren't disclosed.
Mapeley outbid a partnership between Morgan Stanley Real Estate Fund and property company London & Regional.
Abbey's property portfolio, which includes 750 branches, is believed to be worth around �450 million to �500 million. "In addition to bid value, the bank's selection criteria were based on a combination of the management strength and operational flexibility required by the bank and its future property partner," Abbey said.
The U.K. bank earlier this year revealed plans to sell and lease back its entire property portfolio. The bank wants to remove the property risk from its balance sheet as well as the management time spent in overseeing it.
Abbey said it foresees neither branch closures nor redundancies as a result of the deal. "The sale and lease back of the property portfolio is consistent with the recently announced plan to trial a limited form of franchising in its branches," Abbey said. "It can be seen as another example of centrally procured services of which the franchisees can take advantage."
DOW JONES INTERNATIONAL NEWS 06/09/2000
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