Marylebone Warwick Balfour (MWB) has bought DLJ Real Estate Capital Partners’ 20% equity stake and £23m preference share and loan stock interest in MWB Business Exchange, its serviced offices subsidiary.
The deal gives MWB 85% control of the equity in Business Exchange and almost all of the preference shares, allowing it more flexibility for an eventual disposal of the business.
Following the transaction, Business Exchange has been demerged into two separate and independent groups of companies, one for the UK and one for Europe.
DLJ will receive an initial £7.5m in cash and up to £9.5m may also be payable dependent on the amount of cash that MWB realises from its investment in Business Exchange.
DLJ has also made a £8.5m loan to MWB repayable over the next six years at an interest rate of 9%.
Richard Balfour-Lynn, MWB’s chief executive, said: “This is a further step in our stated strategy and enables us to examine a range of options for the European side of our business.”
References: EGi News 03/07/03
