Halifax Bank of Scotland Nearing £150 Million Sale Leaseback of London HQ

Property Week - April 16, 2004

Halifax Bank of Scotland is set to sell its City of London headquarters to Vincent Tchenguiz's new company, just four months after buying the building. Consensus is buying 33 Old Broad Street, EC2, for around £150m with the benefit of a new 35-year leaseback to HBoS.

The 192,000 sq ft (17,837 sq m) building was bought by HBoS from Prudential for around £130m at the end of last year, but the new lease has made it a more valuable investment. The Broad Street deal coincides with a rise in activity in the City investment market. Two large buildings have gone up for sale this week, as some private investors decide to cash in on the huge demand to buy buildings.

Matrix Securities is trying to sell Alban Gate, 125 London Wall, EC2, for around £270m. The move is surprising because Matrix only bought the building in June for around £240m, and private investor syndicates such as Matrix usually hold their investments rather than trade them. CB Richard Ellis is believed to be advising Matrix.

In the second sale, a Malaysian-controlled private family trust has placed 280 Bishopsgate, the London HQ of Royal Bank of Scotland, on the market at £242m. The building was bought in early 2002 for around £220m. FPDSavills is the selling agent.

However, James Crawford, head of City investment at FPDSavills, warned: ‘There is less on the market in the City now than there has been in the last 10 years.' Sphere: Related Content