Land Securities announces that its property outsourcing business, Land Securities Trillium, has agreed an innovative new property outsourcing deal with Barclays Bank (Â´BarclaysÂ´).
The transaction involves 14 properties totalling 31,540m2 and has two elements:
- Barclays will sell Westwood Business Park, Coventry (three buildings totalling 11,300mÂ²) to Land Securities Trillium on a 20-year leaseback arrangement.
- Land Securities Trillium will assume responsibility for 13 short leaseholds surplus to Barclaysâ requirements and largely vacant as a result of its property rationalisation in London and the south of England. Barclays will make a capped payment to reflect the letting risk, as Land Securities Trillium will assume responsibility for all future benefits and liabilities relating to the transferred interests.
Barclays BankÂ´s main objectives in undertaking the deal are to achieve property cost certainty and financial benefit through the two-way transaction structure, as well as transferring the management burden associated with a non-core property portfolio.
Ian Ellis, Chief Executive of Land Securities Trillium, said âWe are delighted to have agreed this new, long-term contract with Barclays Bank. It plays to Land Securities Trilliumâs proven strengths in property risk management and maximising asset values. It again demonstrates that we can provide bespoke property outsourcing solutions to suit our customersâ specific needs. This agreement confirms the continuing evolution of the property outsourcing market.â
Chris Davies, Barclays Bankâs Group Property Director, said âWe are pleased to be commencing this long-term property outsourcing agreement with Land Securities Trillium. The transfer of these properties helps us to realise our property strategy and in turn support our business needs.â
Land Securities Trillium was advised by Nelson Bakewell. Barclays Bank was advised by Jones Lang LaSalle and Atis Real Weatheralls.
Source: Land Securities