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Lloyds sells off property

BRETT Palos, the stepson of Sir Philip Green, has added more than 500 apartments to his property portfolio after successfully buying them in a £400m deal with Lloyds Banking Group.

The deal is likely to kick start a string of residential sales from the banks as they look to reduce their exposure to the property market and focus on their core businesses.

“Lloyds has been particularly badly exposed since it bought HBOS,” one property analyst said. “This could be the first of many sales to cash rich individuals.”

The 21 apartment blocks, now in the hands of Palos, are located in upmarket West London areas, including Kensington and Chelsea.

The apartment blocks were previously owned by a joint venture between Acquire London and Pure Skill.

Brett Palos, who is the son of Green’s wife Tina, made his fortune when he sold ISA group to Electra Private Equity for £35m in 2007. Last month he teamed up with millionaire property developers Anthony Lyons and Simon Conway to buy the 02 leisure and retail centre on London’s Finchley Road for £92.5m. He is also a board member of Philip Green’s Arcadia Group.

London’s residential property market has seen a significant upturn in activity since the start of the year, thanks to steadily improving rents.

Last week Britain’s largest residential landlord Grainger made an offer to buy Sovereign Reversions.