Jonny 5
December 7th, 2005, 05:39 PM
http://www.property-week.co.uk/story.asp?sectioncode=297&storycode=3060172&c=1
The Royal Bank of Scotland has sold its £1bn development portfolio to the Morgan Stanley Real Estate Funds (MSREF).
07.12.2005
By Daniel Thomas
The portfolio comprises 20 city centre sites across the country, most of which RBS acquired as part of its takeover of NatWest in 1998. They include Drapers Gardens and Aldgate Union in London and St James House in Edinburgh.
The purchase was signed on Monday and is understood to be worth almost £1bn which will be put into the MSREF 5 fund.
The sale marks RBS’s departure from development and was sparked by a strategic shift out of non-core operations. It follows a £90m outsourcing of RBS leasehold properties earlier this year. The strength of the London City office market also contributed to the decision. DTZ advised RBS on the deal. No party was available for comment.
John Wallace, who leads the bank’s development arm, will transfer with his team to MSREF and head a development subsidiary.
Wallace reported to Ernest Sheavills, head of RBS’s in-house property department, as head of development since 1999 following the takeover of NatWest.
Around half of the portfolio is in the City of London. Drapers Gardens, the former MEPC site at 12 Throgmorton Avenue, EC2, has planning consent for a 400,000 sq ft (37,160 sq m) scheme over two buildings of 13 and 18 storeys. Drapers Gardens has been the centre of considerable speculation over recent months whether RBS was to link up with a joint venture developer.
The sale also includes the Aldgate Union site on the eastern fringe of the City of London, which RBS acquired from US developer Tishman Speyer for £70m.
The Royal Bank of Scotland has sold its £1bn development portfolio to the Morgan Stanley Real Estate Funds (MSREF).
07.12.2005
By Daniel Thomas
The portfolio comprises 20 city centre sites across the country, most of which RBS acquired as part of its takeover of NatWest in 1998. They include Drapers Gardens and Aldgate Union in London and St James House in Edinburgh.
The purchase was signed on Monday and is understood to be worth almost £1bn which will be put into the MSREF 5 fund.
The sale marks RBS’s departure from development and was sparked by a strategic shift out of non-core operations. It follows a £90m outsourcing of RBS leasehold properties earlier this year. The strength of the London City office market also contributed to the decision. DTZ advised RBS on the deal. No party was available for comment.
John Wallace, who leads the bank’s development arm, will transfer with his team to MSREF and head a development subsidiary.
Wallace reported to Ernest Sheavills, head of RBS’s in-house property department, as head of development since 1999 following the takeover of NatWest.
Around half of the portfolio is in the City of London. Drapers Gardens, the former MEPC site at 12 Throgmorton Avenue, EC2, has planning consent for a 400,000 sq ft (37,160 sq m) scheme over two buildings of 13 and 18 storeys. Drapers Gardens has been the centre of considerable speculation over recent months whether RBS was to link up with a joint venture developer.
The sale also includes the Aldgate Union site on the eastern fringe of the City of London, which RBS acquired from US developer Tishman Speyer for £70m.