Invista Real Estate Investment Management Holdings is to hand over control of its HBOS funds to Lloyds Banking Group and dispose of its remaining assets.
The listed real estate fund management group had been in talks with the bank since the summer over the future of the HBOS funds leading up to the expiry of its five year management mandate in September.
Scottish Widows Investment Partnership, the investment management arm of Lloyds TSB, has picked up the mandate.
A statement from the pair today said that after “extensive discussion” Invista was yesterday advised that the HBOS contracts are to be terminated in October 2011.
As at 30 June 2010 Invista had assets under management of £5.4bn and for the six months to 30 June reported asset management revenue of in aggregate £13.7m.
The HBOS funds – including Clerical Medical, Halifax Life and HBOS – contributed £2.4bn of assets under management and £5.3m of revenue.
A statement released today added that as a result of the loss of the HBOS contracts “Invista has been reviewing its strategic options”.
It concluded: “Without the revenue generated from the contracts, the interests of both clients and shareholders of Invista would be best served through an orderly realisation of value from Invista’s assets, including its asset management business, with the proceeds of such realisations returned to Invista shareholders in due course.”
Invista demerged from HBOS and listed on AIM in September 2006 and was given a five year mandate to manage the HBOS funds.
bridget.oconnell@estatesgazette.com
