HBOS Treasury Services this week completed the £150m PICTS securitisation of its London office, 33 Old Broad Street, EC2.
The office is the base of the HBOS board, HBOS Group Treasury Services, and subsidiaries Clerical Medical and Insight Investment.
The commercial mortgage-backed securities were raised by the 33 Old Broad Street (Jersey) Limited Partnership, whose investors included Tom Hunter’s West Coast Capital, Prestbury Investment Holdings and Bank of Scotland Corporate.
HBOS holds a 35-year lease on the property. UBS was sole lead manager and sole bookrunner.
Investors have confidence in the quality of the HBOS securitisation team, which is first class,” said Drew Allen, head of syndicate and trading at UBS’s asset-backed securitisation team.
The bonds, which were listed on the Irish Stock Exchange, were sold to long-dated sterling investors in London and Scotland.
They were used to repay a bridge loan put in place in July 2004, when the LP trio bought the building from HBOS Group for £142m.
In December 2003, sitting tenant HBOS bought the 192,300 sq ft building from Scottish Amicable for just over £129m, a sub-6% yield.
It used the opportunity to regear the leases before selling the building on.
Other tenants include Deutsche Bank and Government of Singapore Investment Corporation.
