FINANCE: The Co-operative Bank has sold its loss-making repossession subsidiary Illius Properties to Salmon Real Estate for £157.5m.
The firm specialised in the purchase of repossessed properties on an arm’s-length basis, with the intention of making controlled disposals.
Salmon will pay £9.8m to the bank as an equity consideration, while Salmon will repay the bank in cash on behalf of Illius on completion of an inter-company loan of £147.2m owed by Illius to the Bank.
The disposal of Illius is in line with the bank’s previously stated strategy to dispose of its non-core assets.
The equity consideration will be used by the bank for general corporate purposes.
Illius was loss-making and the Co-Op said the disposal was “broadly neutral” from a profit and loss perspective.
