HBOS and Sir Tom Hunter have sold a portfolio of UK retail properties, freeing up almost £200m (€293m) in cash amid a battle with Barclays and private equity firm Permira to take over McCarthy & Stone which has pushed the UK retirement home builder's price tag to £1.1bn.

HBOS and Hunter, through his West Coast Capital investment vehicle, are part of a bidding consortium that also includes the billionaire Reuben brothers. The consortium yesterday won the backing of McCarthy & Stone's board for its takeover offer for the company.