Associated British Ports has created a limited-liability partnership with Norwich Union to acquire its property assets in Cardiff.
The partnership, first tipped in Estates Gazette (News, 12 August), in which Norwich Union has a 55% stake and ABP a 45% stake, has acquired four office developments, including the Welsh Assembly building, from ABP for £53m.
The partnership has established a £40.5m debt facility, of which £17.5m will be drawn down to fund the initial acquisition. The balance will be reserved for a future acquisitions from ABP’s Cardiff Bay estate.
ABP will get £37m from the transaction, representing £53m from the sale less its £16m investment in the partnership.
Bo Lerenius, ABP chief executive, said: “This is a continuation of ABP’s policy of realising value through the disposal of non-operational port-located property. It has the additional benefit of enabling us to retain interest in the assets.”
Grosvenor Waterside Group, ABP’s property development arm, will manage the portfolio.
