Industrial guru Simon Holley is calling time on Altyon Partners, the Middle East-backed investor he launched with partner Simon Blake in 2009, to merge with Thames Valley specialist Landid.
Holley and Landid’s Trevor Silver are in advanced negotiations to bring the two firms together, using Altyon’s substantial backing to create a South East industrial and offices powerhouse.
The Altyon name would disappear under the deal, which is expected to complete this month.
Holley and Blake set up Altyon with £300m of backing, which with gearing gave the business £1bn of firepower, with the intention of securing major purchases across Europe.
But the recession proved too much for Altyon and ultimately it struggled to crack Europe.
It came close to buying the German state-owned Berliner Immobilien Holdings in 2011 for €5bn (£4.2bn), with backing from the Al Hilal Bank in Abu Dhabi, but the Berlin senate rejected the deal, citing concerns about transparency.
It then launched a property unit trust looking to raise £25m from SIPP and SASS individual pension fund investors. However, Holley is hoping for more success by teaming up with Silver and returning to his UK industrial and office roots.
A source said: “The merger combines funding, deal sources and the strength of Landid’s development work with Altyon’s expertise. The companies have done some work together previously and began discussions late last year about a merger.
“Landid had a strong and acquisitive 2013, and when coupled with Alyton’s backing, the pair could form an even more powerful position in the South East.”
The deal will be the second partnership in recent months for Landid, set up by Silver and Stephen Morgan in 2005. Last year saw it form a joint venture with Brockton Capital to create a £150m platform to spend in the Western Corridor. The pair have since bought a number of assets.
Landid co-founder Morgan is now expected to leave the business.
He is understood to have been mulling options for new opportunities in the past 12 months. The merger allows him to sell his shares and explore new ventures, said Thames Valley agents.
Altyon and Landid declined to comment.
joanna.bourke@estatesgazette.com
