Almacantar mandates Rothschild to find shareholder for £2bn business

By James Buckley - Thursday, January 11, 2018 13:17

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The owners behind Central London property developer, Almacantar are embarking on a major investment drive which will lead to either a central shareholder being brought on to take it to the next phase of growth, or an outright sale of the £2bn business, CoStar News can reveal.

The company’s owners, which include cornerstone investor Exor, the investment arm of Italy’s Agnelli family, as well as the family behind Chanel and other private investors, have instructed Rothschild to find a new shareholder for the business to “double up” in London, potentially taking it from a £2bn to a £4bn business.

It is understood that two of the four core investors behind Almacantar have reached the maximum amount they are able to invest in the business, meaning a new investor must be sought to take the company to the next phase of growth.

Almacantar was formed in 2010 and is headed by former Land Securities MD, Mike Hussey

Almacantar, which owns in excess of £2bn of real estate assets including the iconic developments at Centre Point and Marble Arch, has aspirations to grow the portfolio to £4bn, taking a long-term view of London’s global appeal.

A source said: “Almacantar has become a victim of its own success and the platform continues to grow at a rate which requires new investment to facilitate future growth.”

It is understood that the existing shareholders of the business accept that growth could be achieved either by a knockout bid for the whole company or through the introduction of a new shareholder.

Almacantar is a private company structured as an investment club for a small number of large investors, rather than the discretionary fund vehicle that is typical of the property sector. Investors have typically taken an active role in its investment decisions.

Since launching in 2010 Almacantar has acquired more than 1.5m sq ft of prime assets in London including; Centre Point, Marble Arch Place, CAA House, One and Two Southbank Place, Lyons Place and 125 Shaftesbury Avenue.

All parties declined to comment.

jbuckley@costar.co.uk

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