Lloyds Bank Branches, Sale and Leaseback Deals

In an effort to raise capital and reduce the proportion of taxpayer ownership, Lloyds Bank has agreed two large deals to sell off high-street bank branches.

The first of the sale and leaseback deals completed last year and included 44 high-street branches, known as the Frankel Portfolio, which was sold to Aprirose for £39.5m; the second deal is comprised of a portfolio of 40 branches, which was sold to a private investor for £34m. Both deals reflect a yield of circa 5.8% and it is thought that Lloyds has agreed 15-year leases across both portfolios.

Both portfolios contain branches operating under Bank of Scotland, Halifax and Lloyds, and are situated in a number of locations across the UK including London, Bath, Plymouth and nine in Scotland. Lloyds has been trying to reduce outgoings and improve its balance sheet since the financial crash – last year it announced its plans to close up to 200 branches, essentially reducing its presence by 30% but saving £400m a year.

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