Co-op Bank sells property business
The Co-operative Bank has completed the sale of a subsidiary company which acquired repossessed properties in a £157.5m deal.
Illius Properties Ltd acquired properties at an arms-length basis with the aim of making a "controlled disposal" of the buildings at an appropriate time.
It has now been acquired by Salmon Real Estate Ltd.
The consideration for the sale is comprised of a £9.8m payment from Salmon for the shares along with the repayment of an inter-company loan of £147.2m to the bank.
The Co-op Bank said: "The disposal of Illius is in line with the bank's previously stated strategy to dispose of its non-core assets. The equity consideration will be used by the bank for general corporate purposes. Illius was loss making and the disposal was broadly neutral from a profit and loss perspective."
Last month, the Co-op Bank named Capita as the preferred bidder to take over its mortgage serving operation in the UK.