Lloyds parts with Kier Group stake for £91m

Published on Thursday 14 April 2011 15:22

Lloyds Banking Group is offloading its stake in a property joint venture with Kier Group, the construction and development firm, for £91 million.

The deal will result in the latter taking full control of its Kier Developments subsidiary and will also unburden it of all debt obligations to Lloyds.

The portfolio of properties - all of which are south of the Border - includes two office buildings on Savile Row and Cavendish Place in central London and a mixture of commercial and residential land in Frimley near Farnborough, Ashford, Heathrow, Southampton, Swindon and Uxbridge.

Lloyds, which in the process of restructing its property assets, will receive a series of payments for the disposal - made via its Bank of Scotland and Uberior Ventures divisions.

An initial 35m is being paid on completion of the deal, followed by cash payments of 30m and 26m in October 2012 and October 2013, respectively.

Kier said it was planning a programme of development and disposal for the portfolio.

Paul Sheffield, Kier Group chief executive, said: "We would like to thank Lloyds Banking Group for its involvement in the joint venture over the last nine years.

"We are delighted to conclude this transaction, which will offer exciting development opportunities and create significant value for the whole group over the next few years."

As of 30 June last year, Kier Developments had net liabilities of 4m and gross assets of 168m.