Citizens Bank Agrees to $323 Million Sale Leaseback of 241 Branches

The Providence Journal - June 27, 2006

A Pennsylvania-based real estate investment trust has struck a deal to buy 241 bank branches from Citizens Financial Group for $323 million and then lease back the locations to Citizens. American Financial Realty Trust of Jenkintown, Pa., said it expects to complete the purchases this month and early next month.

This is at least the fourth deal Citizens has struck with the company, American Financial spokesman Anthony J. DeFazio said. "Banks in general are realizing more and more it's more profitable for them to lease than to own real estate," DeFazio said. Last October, American Financial paid $60.2 million to buy Citizens' headquarters building in downtown Providence. Citizens, in turn, signed a 10-year lease with the buyer.

DeFazio said his company, which announced the deal in a statement Friday, would not disclose the location of the 241 branches involved in this latest deal until the purchases are completed. They include branches of Citizens Bank and Citizens' Midwest subsidiary, Charter One Bank.

American Financial Realty will acquire the Citizens and Charter One branches in a joint venture with Dillon Real Capital Management LLC. Sphere: Related Content