Legacy Portfolio Case Studies
Finally the lease liability market has come of age with the acquisition of the Wolseley portfolio by Legacy Portfolio.
Mike Evans, Jones Lang LaSalle Director
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Wolseley UK Portfolio, June 2010
Legacy Portfolio entered the bidding process for the Wolseley surplus portfolio, Project Stuart, in November 2009. The portfolio comprised former industrial retail outlets across the country, including 163 leases and 14 freeholds, with a gross liability to expiry of over £70m. Legacy undertook due diligence and analysed the portfolio to ascertain its net liability.
Up against eight other bidders, Legacy triumphed in March 2010 and went onto complete the Project Stuart transaction in June 2010. In just twelve months the liability has been removed. The number of properties remaining is 10% of the original portfolio, and Wolseley are now off risk. The day-to-day management of the portfolio is undertaken by FraserCRE on behalf of Legacy Portfolio.
For more information about the methodology employed on each transaction, view our "Model and Methodology" presentation Download presentation (PDF 1.2mb)
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Emap Plc Portfolio, May 2008
In May 2008, Legacy Portfolio acquired its first portfolio from EMAP Plc. The portfolio comprised 14 leases with a gross provision of £4m. The transaction was structured as a sale of a company with the liabilities and reverse premium within it. The work out of the portfolio was completed within nine months and the savings on the provision exceeded 50%. The work out was managed by FraserCRE on behalf of Legacy Portfolio.
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Virgin Media Portfolio, February 2012
Legacy Portfolio acquired Virgin Media's surplus property portfolio, consisting of 28 office buildings across the UK, on 14th February 2012. Legacy successfully de-risked Wolseley UK from its surplus portfolio within twelve months, and will look to achieve the same result working on Virgin Media's portfolio.
Legacy worked with its specialist team of advisors to agree the price and structure of the transaction, including: FraserCRE, Jones Lang LaSalle, Slaughter and May, Smith & Williamson, BrookStreet des Roches and Brown Rudnick.
Paul Harris, Executive Director of Property at Virgin Media, said:
"We are pleased to have transferred the management obligations of our surplus properties to Legacy Portfolio. This now enables the team to focus on adding value to our operational estate of over 650 properties rather than spending resources and time managing a diverse non core-portfolio."
Press coverage relating to this transaction:
Property Week: Virgin Media Offloads Lease Liabilities to Legacy Portfolio
CoStar: Virgin and Morrisons dispose of Surplus Lease Liabilities
Bloomberg: Virgin Media, Morrisons hire lease breakers to cut bill
Business Week: Virgin Media, Morrisons hire lease breakers to cut bill