Shock News - Barclays Bank - Formal Statement Expected

[copycat]

Ripe for re-development. The large banking hall and the entire premises and car park site occupied by Barclays Bank in Victoria Street Douglas is up for sale.

 

The advert for the Barclays House sale is in this week's Courier with Jones Lang LeSalle as the international agents (and Black Grace Cowley locally) asking for offers in excess of £6.5million.

 

At least there is the franchise operation with the IOM Post Office for counter type services.

[Alias]

So where are Barclays relocating to?

[TerryMcCann]

It's a sale and leaseback

 

Note the 15 year lease of 2 floors to Barclays mentioned in the advert

[manxchatterbollox]

Ripe for re-development.

 

Its a standard sale and lease back, just like most of the bigger commercial transactions in the papers recently. But then as you know everything, you'd know that wouldn't you?

[Alias]

Thanks mcb for making me look retarded.

[copycat]

It's a sale and leaseback

 

Note the 15 year lease of 2 floors to Barclays mentioned in the advert

 

which means what please - in simple English that non-expert financial gurus can understand - and why only two floors of a 5 story building?

[mojomonkey]

which means what please - in simple English that non-expert financial gurus can understand - and why only two floors of a 5 story building?

 

You're the one always posting links to The Financial Times!

[TerryMcCann]

which means what please - in simple English that non-expert financial gurus can understand - and why only two floors of a 5 story building?

 

They sell the building

 

and then lease back the bits they need

 

They have at least 2 other buildings in Douglas so likely have excess capacity. Obviously they will need the banking floor and probably some admin space on the other floor. No need to lease the whole thing back if they don't need it

[grant]

Thanks mcb for making me look retarded.

 

Nope, you did that all by yourself by taking a mcb thread seriously! Bet you don't do that again, mate.

[cheeky boy]

The government did a similar thing with the incinerator, it was sold to a bank and leased back over 35 years.

 

Seems a strange thing to do, sell off an asset to raise capital when there was a buget surplus that year.

 

Its like re-mortgaging your house when you dont need the money

[copycat]

Thanks mcb for making me look retarded.

 

is in NZ has job and new relationship - unlikely to be coming back - will pass on your best wishes next time there is an e-mail.

 

back to topic with next post

[copycat]

The government did a similar thing with the incinerator, it was sold to a bank and leased back over 35 years.

 

Seems a strange thing to do, sell off an asset to raise capital when there was a buget surplus that year.

 

Its like re-mortgaging your house when you dont need the money

 

 

and it ends up costing you loads more in the end although am I right that if its a full repairing lease the occupier isn't responsible for the maintenance or upkeep?

[cheeky boy]

The government did a similar thing with the incinerator, it was sold to a bank and leased back over 35 years.

 

Seems a strange thing to do, sell off an asset to raise capital when there was a buget surplus that year.

 

Its like re-mortgaging your house when you dont need the money

 

 

and it ends up costing you loads more in the end although am I right that if its a full repairing lease the occupier isn't responsible for the maintenance or upkeep?

 

In the case of smaller commercial buildings the landlord is responsible for the outside and the tenant the interior, but with the incinerator I would imagine the operator (SITA) would maintain the building.

 

I have seen the lease but it ran to over a hundred pages and I can't remember it all. You can look it up at the registry behind the court house.

[immortalpuppet]

So A) explain the shock news

 

and B) who should we be expecting a statement from?

[Gladys]

I thought the benefits of sale and leaseback were twofold: firstly, you free up capital; and, secondly, you replace capital expenditure with revenue expenditure (rent) which is offset against your profit so you achieve a tax saving. (This may be relevant here as banks are excluded from the nil corporate tax rate.)

 

Depending on the terms of the lease, there may be other advantages like passing some of the repairing obligations to the landlord (not that this happens often as most commercial leases are full repairing leases which means that you could be saddled with re-build costs if the building passes its sell by date). As the sole or main tenant, you may also be in a position to buy back the freehold, or head tenancy, at a later date. Lots of reasons to do it and all quite common.