In an effort to raise capital and reduce the proportion of taxpayer ownership, Lloyds Bank has agreed two large deals to sell off high-street bank branches.
The first of the sale and leaseback deals completed last year and included 44 high-street branches, known as the Frankel Portfolio, which was sold to Aprirose for £39.5m; the second deal is comprised of a portfolio of 40 branches, which was sold to a private investor for £34m. Both deals reflect a yield of circa 5.8% and it is thought that Lloyds has agreed 15-year leases across both portfolios.
Both portfolios contain branches operating under Bank of Scotland, Halifax and Lloyds, and are situated in a number of locations across the UK including London, Bath, Plymouth and nine in Scotland. Lloyds has been trying to reduce outgoings and improve its balance sheet since the financial crash – last year it announced its plans to close up to 200 branches, essentially reducing its presence by 30% but saving £400m a year.
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