Remodelled from the remains of Premier Land, the London-listed company is now setting its sights on the Dutch market
Probus Estates is the UK-listed Dutch property investment vehicle controlled by Swedish investor Lars-Erik Magnusson.
Until last month it retained its original London stock market name of Premier Land, but after an 18-month clear-out since Magnusson took control in 1996, the group has been renamed to reflect its new European direction.
Magnusson bought a 47% stake in Premier Land in 1996 by injecting his single asset company, Larmag Investments, into the quoted group. Larmag owns the award winning Magna Plaza shopping centre in Amsterdam – now Probus Estates’ only retail asset.
Since then, Magnusson has struck a deal with the Inter Ikea group, Sweden’s furnishing giant, controlled by the Kamprad family with whom he is reported to have close ties. A joint venture was formed in 1997 when Ikea provided four Amsterdam office and warehouse investments, worth around £17.6m and producing an annual income of £1.2m, in exchange for a 29% stake in Premier Land.
Recently, links with Inter Ikea have been further strengthened with the appointment of the Swedish group’s finance director, Sten Erik Palmquist, as a non-executive director of Probus.
Known as Premag Real Estate, this joint venture subsidiary is now Probus Estates’ main operating vehicle. In the last few weeks Premag has bought a further six Amsterdam office buildings (including the headquarters of Magnusson’s Larmag Investments) valued at some £19.4m. They will add £1.7m to the group’s annual rent roll. This deal is being settled with the proceeds of a placing and open offer of 85.8m new Probus shares at 10p a piece. Magnusson’s private investment company is subscribing to its full entitlement of shares and backing a new convertible loan.
Since taking the reins, Magnusson has stripped out the old Premier Land portfolio which had been run by the high-profile London entrepreneur Desmond Bloom.
All but two of the old property assets have now been sold. Disposals included a £49.2m portfolio owned by subsidiary Union Group which was put into receivership after Magnusson’s arrival and three other subsidiaries owning properties worth around £13m, but being heavily indebted, were sold for just £3.
Magnusson has retained control of the Aviemore leisure centre in Scotland which is now the centrepiece of a £50m redevelopment of the ailing 1960s ski resort. In partnership with MacDonald Hotels, Probus Estates is working with local development agencies in a bid to win European funding to rebuild and relaunch the resort. MacDonald Hotels has a 15% stake in the centre, which it can increase to 35% on the project’s completion. Probus’ only other UK asset is a shopping centre in Doncaster, northern England, which is for sale.
Since Magnusson’s arrival Premier Land has refocused its portfolio firmly on the Dutch property market, concentrating on well-let office buildings in central Amsterdam. Expansion, at least in the short to medium term, will continue to focus on the Dutch market: the steady growth of the Dutch economy and a shortage of available office space in Amsterdam are attractive to the company.
Probus Estates
(c/o Larmag Investments BV )
Larmag Building
Overschiestraat 61
1062 XD Amsterdam
tel: + 31 20 669 7032
fax: + 31 20 669 6508
