Royal Bank of Scotland is working on plans to outsource the bulk of its 3,000 properties.
RBS’s operational property – including high street NatWest and RBS branches, as well as offices – will be outsourced and the bank will also dispose of assets that have become surplus since it took over NatWest in 2000.
It is in the early stages of developing a structure for the deal, having just appointed the Ernst & Young team that made its name in outsourcing by advising Abbey National on the transfer of its portfolio to Mapeley in 2000.
However, sources said specialists Land Securities Trillium and Mapeley had already been sounded out about a complete outsourcing package, involving the transfer of freeholds and all lease liabilities.
Earlier this year, RBS began working on a strategy to dispose of only its surplus properties – worth around £200m – but one source said: “Since then it seems that RBS has taken a more bullish approach and will try to outsource operational property as well.
“It is one of the biggest banks and its decision could open the floodgates for some of its rivals, such as LloydsTSB.”
Last year, RBS awarded Nelson Bakewell and GVA Grimley two-year contracts to manage its UK property.
It divided the UK into three regions, appointing Nelson Bakewell for the South East and Scotland/the North, and GVA Grimley for the Midlands.
Both agents will be providing advice to RBS and E&Y but declined to comment.
RBS is presently buying its two City headquarters – the £240m 280 Bishopsgate, EC2, and £190m Premier Place, EC3 – and two sites at Aldgate Union, E1, earmarked for development by Tishman Speyer.
References: EGi News 02/08/04
