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Rotch roped in to ratchet up Aviva portfolio offer

News

Julia Cahill

17 January 2004

Presale talks show LandSec counting chickens before bid hatches

Land Securities Trillium is in talks to team up with Rotch to bolster its bid for Aviva’s 6m sq ft portfolio.

Full bid documents were submitted on 9 January for the first 2m sq ft tranche of the outsourcing deal.

And it has emerged that LandSec Trillium, which has submitted a bid, is talking to Robert and Vincent Tchenguiz’s Rotch group about selling one or more of Aviva’s assets should its bid be successful.

Aviva’s giant campus at 8 Surrey Street in Norwich is among those to have caught Rotch’s eye.

The potential deal is likely to be with R20, the subsidiary owned by Robert.

LandSec Trillium is up against Mapeley and a joint venture between London & Regional and Carillion. An insider said LandSec was keen “to make its bid more aggressive. The opportunity to presell some drier assets to Rotch is one option.”

Rotch has a strong relationship with LandSec Trillium. In August 2002, R20 bought a £270m portfolio of six BT office properties from Telereal, the outsourcing vehicle jointly owned by LandSec Trillium and the William Pears Group. Rotch subsequently completed a £286m securitisation of five of those buildings.

Like the BT deal, a slice of the Aviva portfolio would fit Rotch’s criteria of buying property let to strong covenants on long leases. Rotch would again securitise the buildings. The freeholds in the first tranche of the Aviva deal would be leased back for at least 20 years.

Rotch is also familiar with the portfolio. In 1999, Rotch acquired Norwich Union House in Sheffield. Norwich Union merged with CGU the following year and was renamed Aviva in July 2002.

Presentations to Aviva start next week and a decision on the outsourcing is expected in early February. Depending on the success of the first phase, a further two tranches of 2m sq ft each will be rolled into the outsourcing.

This will include operational office buildings, Aviva’s central London assets and a fuller facilities management role.

Hopkins heads Mapeley

Jamie Hopkins has been made chief executive of outsourcing specialist Mapeley. Hopkins, formerly managing director, has filled the shoes of ex-Jones Lang LaSalle man Bob Spoerri, who left in September over strategic differences.

Last year, Mapeley was caught up in the political scandal over the transfer of the Inland Revenue’s £220m property portfolio to its Bermuda-based sister company, Mapeley Steps. Its present bid for the Bradford city council portfolio specifically states that the property will be held onshore. Hopkins told EG: “We need to start lifting the curtain.”

Meanwhile, Rob Kauffman of Fortress Investments is taking on the role of Mapeley chairman from Richard Georgi of Soros Real Estate Partners. Both investors have 42.5% stakes in Mapeley, with Delancey holding the remaining 15%.

Presale talks show LandSec counting chickens before bid hatches Land Securities Trillium is in talks to team up with Rotch to bolster its bid for Aviva’s 6m sq ft portfolio. Full bid documents were submitted on 9 January for the first 2m sq ft tranche of the outsourcing deal. And it has emerged that LandSec Trillium, which has submitted a bid, is talking to Robert and Vincent Tchenguiz’s Rotch group about selling one or more of Aviva’s assets should its bid be successful. Aviva’s giant campus at 8 Surrey Street in Norwich is among those to have caught Rotch’s eye. The potential deal is likely to be with R20, the subsidiary owned by Robert. LandSec Trillium is up against Mapeley and a joint venture between London & Regional and Carillion. An insider said LandSec was keen “to make its bid more aggressive. The opportunity to presell some drier assets to Rotch is one option.” Rotch has a strong relationship with LandSec Trillium. In August 2002, R20 bought a £270m portfolio of six BT office properties from Telereal, the outsourcing vehicle jointly owned by LandSec Trillium and the William Pears Group. Rotch subsequently completed a £286m securitisation of five of those buildings. Like the BT deal, a slice of the Aviva portfolio would fit Rotch’s criteria of buying property let to strong covenants on long leases. Rotch would again securitise the buildings. The freeholds in the first tranche of the Aviva deal would be leased back for at least 20 years. Rotch is also familiar with the portfolio. In 1999, Rotch acquired Norwich Union House in Sheffield. Norwich Union merged with CGU the following year and was renamed Aviva in July 2002. Presentations to Aviva start next week and a decision on the outsourcing is expected in early February. Depending on the success of the first phase, a further two tranches of 2m sq ft each will be rolled into the outsourcing. This will include operational office buildings, Aviva’s central London assets and a fuller facilities management role. Hopkins heads Mapeley Jamie Hopkins has been made chief executive of outsourcing specialist Mapeley. Hopkins, formerly managing director, has filled the shoes of ex-Jones Lang LaSalle man Bob Spoerri, who left in September over strategic differences. Last year, Mapeley was caught up in the political scandal over the transfer of the Inland Revenue’s £220m property portfolio to its Bermuda-based sister company, Mapeley Steps. Its present bid for the Bradford city council portfolio specifically states that the property will be held onshore. Hopkins told EG: “We need to start lifting the curtain.” Meanwhile, Rob Kauffman of Fortress Investments is taking on the role of Mapeley chairman from Richard Georgi of Soros Real Estate Partners. Both investors have 42.5% stakes in Mapeley, with Delancey holding the remaining 15%.