Allied London chief executive Michael Ingall has led a management buyout of the company from Delancey and the RBS Opportunities Fund.
Allied London management acquired 100% of Capital HoldCo, the group’s parent company which owns Manchester’s Sinngfields, using debt funding from RBS and Pramerica.
CapitalHoldCo was established as an acquisition vehicle with Delancey and RBS in 2006.
Allied London was formed in 2010 by Ingall, together with directors Freddie Graham-Watson and Stuart Lyell.
As part of the transaction, Allied London’s new management company will be separated from the operational side of the business.
This company, called Capital Properties UK Limited, was formed from the Spinningfields Management Company and specialises in property and facilities management.
The company has a separate management team and operates out of its own office base in Tower 12, Manchester, under its director Mark Burgess.
Allied London LLP entities have interests in projects in Leeds and Poplar, East London, as well as a joint venture set up in 2010 with Aerium.
This venture is focused on projects in Central London, currently including developments in Savile Row, W1, and Clerkenwell.
It recently sold 20 Cannon Street, EC4, following a highly successful redevelopment.
Ingall said: “This transaction enables us to capitalise on our exemplary track record as a successful UK developer and build the business independently. We have enjoyed our equity partnership with both Delancey and the RBS Special Opportunities Fund, but now is the appropriate time for all parties to focus on their own business strategies.”
“We will remain committed to our current ventures, with any new projects likely to be restricted to Central London, on which front we hope to make further announcements in the first quarter of this year.
“We will continue to own and manage the Manchester Spinningfields estate to maturity and expect to complete this development by the end of 2015, albeit most of the retail and leisure has already become a very popular new city centre destination.
“In Leeds, we hope to start remodelling work in the spring, while at Poplar, we will continue to press on with the regeneration of the Chrisp Street area with our partners United House.”
Pramerica has previously financed Allied projects in Leeds and Manchester.
Head of Pramerica’s real estate platform Andrew Macland said: “Pramerica is proud to support the Allied London management team as they build their independence and continue to demonstrate their skill and innovation on their projects in Manchester and Leeds.
“Pramerica’s Real Estate Capital platform was pleased to finance Allied London’s acquisition of these projects and is committed to funding future capital expenditure as Allied London implements its vision for these schemes”.
Mark Burgess, director of Capital Properties UK said, “CPUK is a fast-growing business and one we are very much committed to expanding. We see great opportunity in creating value from focused, efficient management. While our is expertise firmly grounded in operational service industries, our approach to generating a sense of place and community within buildings and schemes sets us apart from traditional management companies.
“We aim to provide outstanding service and value to occupiers, rather than simply managing a service charge. There is a real synergy between place creation and generating demand and sustainable value, and we understand that extremely well.”
RBS managing director for London real estate and sustainability Suzanne Avery said: “We have worked with Mike and the Allied London management team for many years and are delighted to be supporting both them and a sponsor of Pramerica’s quality with this acquisition.
“The UK market is core to our real estate finance business and we look forward to developing these relationships still further as the business continues the development of Spinningfields and expands its activities elsewhere.”
Jack.Sidders@estatesgazette.com
