Vernon Hill's UK bank buys branches, weighs IPO
"Metro is hoping to capture around 3 percent" of London's bank deposits
Vernon Hill's UK bank buys branches, weighs IPO
Joseph N. DiStefano
Metro Bank, the UK bank backed by ex-Commerce Bancorp boss Vernon Hill, expects to open its first two branches in London in June, complete with Commerce-style long hours, change machines and pet accomodations, among other services.
One branch, on Cromwell Road, occupies the former office of the once-famously fraudulent Bank of Credit and Commerce International (BCCI), reports the London Telegraph here (fourth item).
Metro has also picked a couple of suburban sites: "an old JJB Sports store in a shopping park in Borehamwood, Hertfordshire and a shop near Fulham Broadway station in west London," reports the Financial Times here. "Metro Bank is targeting highly populated areas that already have a number of rival bank branches," and larger than typical UK branches with up to 4,000 sq ft of floor space.
"Metro has signed 15-year leases for the stores with annual rents commencing at £230,000 ($353,439) for Borehamwood and £320,000 for Fulham." Broker Knight Frank is looking for more. Metro "is hoping to capture around 3 per cent of retail deposits made in London." FT also says Hill hopes to sell shares to the public by 2013.
