Savills says it will buy the remaining stake in its fund management business Cordea Savills for £15.4m.
The agent, which holds 60% of the voting rights in Cordea Savills through subsidiary Savills Investments, said today it would buy the B Member interests, representing 40% of the voting rights in the company.
Savills will pay £4.6m on transaction close with another £4.5m in equal instalments on the first and second anniversaries, with up to a further £6.3m on the second anniversary subject to Cordea Savills’ earnings performance in the period.
The company said the move follows a review of the fund manager’s ownership structure, which concluded that the joint ownership model was not “appropriate to take the business through the next stage of its development.
Savills chief executive Jeremy Helsby said: “Cordea Savills has been very successful since it was founded nearly six years ago.
“This transaction demonstrates our long term commitment to the fund management business and is a natural part of the evolution of Cordea Savills.
“I am delighted that we will have a structure which enables us to deploy our resources to build the business within a governance regime that continues to promote Cordea Savills as an independent organisation within Savills.
“The ability to service clients’ indirect investment requirements is strategically important for Savills, and provides further balance to our transactional, consultancy and property management activities.”
John Partridge, chairman of Cordea Savills, added: “This marks the next phase in the development of Cordea Savills.
“We have a solid platform for growth and Savills’ backing will allow us to develop the business and expand our range of investment products.
“This is a logical and natural step forward for the business given the strength of the relationship with Savills and for our clients, management and staff it provides long term stability. It means that Cordea Savills will be well positioned for the future.”
nathan.cross@estatesgazette.com
