Citibank sells 47 branches
NEW YORK (Reuters) - Citibank, the consumer banking arm of U.S. bank Citigroup Inc (C.N), has sold 47 branches in the New York area for about $100 million to an unnamed Irish investment group, which will lease the sites back to the bank, the group's representative said on Wednesday.
Savills Granite is the real estate investment banking firm representing the Irish buyer.
The deal underscores the allure of U.S. property to foreign investors who are armed with strong currencies against the weak dollar. It also highlights some of the actions Citigroup is taking to strengthen its balance sheet.
"This deal, which represents one of the largest portfolio sales of the year in the New York City market, reinforces how offshore investors are still eyeing large-scale deals here," Borja Sierra, executive managing director of Savills Granite, said in a statement.
The branches total about 157,312 square feet of space. Twenty branches are located in Nassau County, Long Island; eight in Suffolk County, Long Island; six in Westchester County; three in Staten Island; four in Queens; three in Brooklyn; two in the Bronx; and one in Manhattan.
The deal calls for Citigroup Global Markets Inc to lease back the branches for 15 years.
Citigroup Chief Executive Officer Vikram Pandit last week unveiled plans to shed $400 billion of assets within three years and boost revenue by up to 10 percent annually, to restore profitability after the bank suffered huge losses tied to the flagging mortgage and credit markets.
(Reporting by Ilaina Jonas; Editing by Gary Hill)
