News on 20 October 2000
Mapeley
Columbus Ltd has acquired Abbey National’s property portfolio, both
freehold and leashold, for £457m. The company will provide Abbey
National with property management for the next 20 years.
As reported earlier, Abbey National has been in negotiations to sell its
property portfolio and had two bidders for the sale and leaseback deal
(see News story). They were Morgan
Stanley Real Estate Fund with property company London & Regional and
Mapeley. Mapeley was named preferred bidder last month (see
News story).
Mapeley will be responsible for the management of the existing property
requirements although Abbey National will retain the facilities management
responsibilities, such as security, cleaning and internal repairs and
renewals.
Abbey National says the deal is one of the largest and most innovative
of its kind in the private sector in the UK. It involves some 1,307 head
interests in property and 524 subleases amounting to over 600,000 sq m.
Mark Pain, group finance director said: "This is a landmark transaction
for us. We have taken a major step towards being able to alter, radically
if required, our property requirements in order to meet our future business
needs, thereby significantly enhancing our competitive position. This
transaction delivers significant long term value to our shareholders and
is yet another example of how the Abbey National Group is innovating to
maintain and increase efficiency in its business."
The
immediate and long term benefits of the agreement will, for Abbey National,
be the substantially reduced exposure to property risk, improved operational
flexibility and secured property costs for the foreseeable future.
Mapeley is owned by Fortress Investment Group, Soros Real Estate Partners
& Delancey Estates Plc
