Lloyds Banking Group is starting a mass sell-off of the commercial development assets it inherited from the Bank of Scotland (HBOS).
In a bid to accelerate the disposal of Bank of Scotland assets, Lloyds has announced plans to sell £100 million of commercial property, whilst prices remain favourable.
The 300 luxury properties making up the portfolio were bought by HBOS-backed development firm Heritor’s during the boom years and boast some of Scotland’s most prestigious addresses, including India Street in Edinburgh.
The high-profile portfolio has been in the hands of administrators at PricewaterhouseCoopers since Heritor’s filed for administration early last year.
The banking group is also rumoured to be considering selling 700 more properties, located across Dundee, Edinburgh, Glasgow, Stirling and Manchester. A commercial property consultancy has been brought in to advise on these properties, which reportedly include flats let mainly to students.
This latest sell-off news follows an announcement made last week that Lloyds has put 110 Queen Street, a key development site in one of Glasgow’s most important conservation areas, onto the market. Previous plans for the site included a mixed-use office and retail development. The group also made a recent deal to sell their shares in house builder Crest Nicholson, to Varde, an investment fund in the US.