David Mellor’s and Douglas Maggs’ Wharf Land Investments is rationalising its estate following two unsolicited bids for the business.
The pair last week rejected two bids “in the several hundred millions” to buy the firm – one from Citibank, the other from a UK company.
Maggs said: “The bids we received for the entirety of the company did not meet our expectations. We were approached, but did not think that the offers represented the value of Wharf Land going forward.”
The developer has not ruled out a future sale of the business, but said it was not actively marketing Wharf Land.
The latest filed accounts for the group, signed off in June this year, reveal an emphasis of matter statement as its liabilities exceeded its net assets by almost £5m.
Maggs admitted the firm needed to generate a “certain amount of cash”, but said its strategy was to dispose of older sites in its 15,000-acre estate.
Assets currently up for sale include an 800,000 sq ft warehouse in Immingham, Lincolnshire, let to Chinese chemical business Bluestar Fibres; Amen Corner in Bracknell, Berkshire; and a site in Rowhedge, Colchester. Together, they are expected to fetch about £22m.
Maggs said the group was not winding down, and planned to use cash raised from the sales to strengthen Wharf Land’s portfolio.
joanna.bourke@estatesgazette.com
