UK's Largest Life Asurer Planning £300 Million Sale Leaseback

Scotsman.com February 1, 2004

Insurance group Aviva is drawing up plans for the sale of the former General Accident headquarters in Perth as part of a £300m sale and leaseback of its property portfolio. The UK's largest life assurer, which trades under the Norwich Union brand, wants to sell and lease back around 50 properties in Perth, York and Norwich out of around 340 properties that it owns. General Accident's former HQ in Perth is one of the buildings which Aviva plans to sell to a property company and then rent back over 20 years. It is understood that three property companies - Land Securities Trillium, Mapeley and London & Regional - were invited to bid for the portfolio, which covers 1.3 million sq ft, in the autumn.

The companies are expected to submit their bids in the coming weeks, and the deal is expected to be concluded within the next two months. By selling and then leasing back its properties, Aviva - formerly CGNU - will raise capital immediately, and retain the buildings it requires. General Accident was based in Perth before merging with Commercial Union in 1998. The firm was renamed CGNU after the acquisition of Norwich Union. Sphere: Related Content