London & Stamford snaps up property from Lloyds

LONDON & Stamford Properties has bought 16 distribution properties from a Warner Estate and Lloyds Banking Group joint venture for £208.5m.

The Aim-listed property investor, formed in late 2007 to exploit steep discounts carved out during Britain’s recent property slump, bought the portfolio using a combination of existing cash resources and debt provided by the Royal Bank of Scotland.

The 16 warehouses comprise 3.4m square feet of space over a total site area of 165 acres. Some 13 of the units are located in the Midlands, with single properties in Scotland, the South East and the South West.

Martin McGann, a director at London & Stamford, said the sale was unlikely to trigger a flood of asset sales from Lloyds.

“I think we’ll see Lloyds make one or two deals but it we won’t see the market flooded with distressed assets,” he said.