The Co-operative Estates has appointed surplus lease specialist Legacy Portfolio as part of an outsourcing pilot.
Legacy Portfolio will focus on the disposal of The Co-operative’s portfolio of 19 predominantly retail leases, with a gross liability of over £50m and floor area of 250,000 square feet.
Geoff Player, Director of Commercial & Investment Property, The Co-operative Estates, said: “The pilot will allow The Co-operative to benefit from Legacy Portfolio’s expertise and for their effectiveness to be measured as a potential solution for the wider surplus leasehold portfolio. Surplus property is the topic of the moment, and businesses such as ours are looking at ways to be innovative with space and ultimately mitigate costs.”
Alexander Anton, Chairman of Legacy Portfolio, said: “The partnership with The Co-operative is further evidence of Legacy’s commitment to re-cycling surplus property back into the local business community to encourage economic growth.”
Paul Vernham, Senior Director at DTZ, added: “A bespoke solution has been delivered to meet the specific requirements of The Co-operative. The transaction shows that the market will respond to client needs and is further evidence of the developing market in surplus lease liabilities.”
This is the sixth leading UK corporate to outsource surplus leasehold property to a specialist, including Virgin Media, Wolseley UK and Morrisons.
The Co-operative was advised by DTZ. Legacy Portfolio was advised by Jones Lang LaSalle, FraserCRE, Smith & Williamson, HBJ Gateley, and Brunswick.