Friday, June 09, 2006

Barclays Completes £85m Sale Leaseback of 15 High Street Bank Branches

Property Week reports that Prudential Property Investment Managers (PruPIM) is about to pay more than £85 to acquire a portfolio of 15 high street branches from Barclays. The purchase price provides a yield of around 4.3% as the branches are among the best located high streets branches in the UK. PruPIM acquired the portfolio for one of its retail funds and reportedly beat a shortlist of private investors to the portfolio, which was Barclays' first sale and leaseback to be sold outside of auction.

Barclays is preparing to bring another £70m portfolio 25 of high street branches to the market that will be leased back for 20 years with a break at 15. This portfolio is expected to produce a yield of 4.75% reflecting more secondary locations than the previous sale.

The bank is also reportedly selling its 300,000 sq ft Barclaycard headquarters to a UK fund for £75m at a yield of 5.5%. Barclays' offices at Brackmills Industrial Park, Northampton, and its call centre at Gadbrook Park, Cheshire, are also reportedly under agreement with seperate buyers.

Jones Lang LaSalle's portfolio team is advising Barclays which holds more than 10m sq ft (929,000 sq m) of freehold properties across the world and has 1,700 branches in the UK. Sphere: Related Content

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