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LONDON-UK bank HBOS has appointed Teesland to manage its tenanted property portfolio of 650 interests across the UK

HBOS has spent the past five years aggressively expanding and merging as part of wider consolidation of the sector in the UK. But in the process it has acquired a broadly spread portfolio of offices, shops and industrial interests across the UK.

The decision to outsource the management of this portfolio emerged from a restructuring of the company following the merger of Halifax and Bank of Scotland in 2001. HBOS now has a rent-roll of £26 million ($41.3 million) and the outsourcing of management will free up staff to concentrate on operational properties.

The contract will see Teesland manage leases of the portfolio rather than investment deals but neither side was willing to divulge how much it will be paid for this.

Mickola Wilson, joint chief executive of Teesland, said: “We aim to manage the portfolio’s cash flows through improvements and repairs, dealing with tenants and landlords and possibly through changes of use where necessary.

She added: “We are looking to increase our asset management and we hope this is the beginning of a trend. Because of the importance of cash flows in this kind of portfolio, this sort of investment is probably of more concern to the finance director than to the investment team.”

There are historic links between the companies. Teesland managed Bank of Scotland’s occupational portfolio in Scotland and HBOS is a shareholder in Teesland and a joint venture partner in a number of developments throughout the UK.

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