Peter de Savary, who recently turned his attention to the property market with the acquisition of a share stake in Alfred Walker, is selling the London and Paris St James’s Clubs to Norfolk Capital Group for £22.1m.
Norfolk is financing the deal with a £44.2m rights issue on the basis of one new share for every three held, at a price of 45p for each of the 102.7m shares being issued.
The cash not tied up in the St James’s purchase or in the acquisition on completion of the £7.5m Caversham Hotel in Reading will be used to repay debt or will be put on deposit pending long-term investment.
The deal includes an option to acquire the company owning the proposed club in Los Angeles at any time prior to opening, for a price of $1m above costs to date. Thereafter, until October 1988, the club will be on offer to Norfolk at $35m.
The arrangements are that Mr de Savary will become honorary president of the clubs.
Norfolk pushed up its pre-tax profits from £439,000 to £1.42m in the half year to June 30 and the future is viewed “with confidence”.
