LONDON-A Dutch-American consortium has snapped up the largest portfolio ever to be put on the UK market. ING and JP Morgan are paying euro 1.74 billion ($2.1 billion) for 128 properties marketed by Abbey National. Industry sources say a decision was made at the end of last week but a formal announcement is due out in the next few days.

ING is expected to sell off some of the properties, although most will end up in its funds. The portfolio comprises 128 buildings across the UK and include retail warehouses, industrial units, regional offices, high street shops and distribution outlets. They generate an annual rent of euro 108.6 million ($131.1 million).

Abbey received more than 30 bids after appointing CB Richard Ellis to sell the properties of subsidiaries Scottish Mutual and Scottish Provident. King Sturge acted for ING. First-round bidders included Nomura, Morgan Stanley, Vincent Tchenguiz, GE Capital, Goldman Sachs, the Reuben brothers and Insight Investment, part of HBOS, sources tell GlobeSt.com.

Despite strong interest, the final price tag is less that the original estimate of euro 2.03 billion ($2.45 billion). But one insider says this may reflect concerns that the deal "could represent the high watermark of the property investment boom." ING and JP Morgan are believed to have made the purchase at an initial yield of 6.1%, higher than the average for UK commercial property.