Chesterton is at the centre of a bidding frenzy following the announcement that the property consultancy had gone into receivership
Atisreal and Savills are both understood to be keen to get hold of Chesterton’s residential and property management businesses.
Drivers Jonas senior partner Nick Shepherd, speaking to Estates Gazette at MIPIM 2005, admitted he would be keen to “pick up” individuals or teams from the regional offices and central London businesses. “There are still good quality people around,” he said.
Bidders have until 5.30pm today to make their offers. Most of Chesterton’s offices are now closed.
The bidding battle follows the announcement this morning that Chesterton has gone into receivership and made 300 staff redundant.
Royal Bank of Scotland took the decision to call in Grant Thornton just weeks after Chesterton celebrated its bicentenary.
The privately-owned business employs over 700 staff at 36 offices across the UK.
Chesterton staff, who were told the news at 9am today, are reacting angrily.
Tim Harlow, director of business development and client relations, said: “As of nine o’clock this morning, the vast bulk of the commercial staff will be out on the street with no pay.”
Explaining the decision to put Chesterton into receivership, Grant Thornton partner Nigel Morrison said: “Chesterton has been making significant losses over the past few years, partly due to the competitive trading environment particularly in commercial property and partly due to the level of rent voids. As a consequence its cash flow has been under pressure.
“The residential business, which has an excellent reputation in its key London locations, has been operating steadily, despite the soft market conditions for residential property.
“The receivers have already received serious expressions of interest for various business streams including the residential business from a number of parties and are cautiously optimistic that going concern sales of certain parts of the business will be achieved.”
Chesterton went private in 2003 and was delisted from the stock exchange in March 2004.
The consultancy is controlled by Skillglass, a subsidiary of Resurge.
Chesterton operates 18 commercial offices across the UK and employs more than 700 staff.
References: EGi News 08/03/05
