Japan's Nomura takes 75% stake in Lothbury Investment Management

By Paul Norman - Thursday, July 12, 2018 8:14

Nomura Real Estate Holdings, the publicly-listed Japanese real estate business, has taken a 75% stake in Lothbury Investment Management Group, UK real estate investment manager.

The 25% balance will remain in the ownership of the LIM management team.

Nomura said in a statement that it was the "first step for NREHI and its JPY1.4trn (£9.2bn) investment management business, Nomura Real Estate Asset Management Co to expand its operations overseas, and a significant development for Nomura Real Estate Group in strengthening its global footprint following business investments in Vietnam, Thailand, China and the Philippines".

LIM, which has £2.1bn of AUM, specialises in managing property portfolios across a range of funds, including its flagship Lothbury Property Trust.

The parties said that the business has 110 high profile clients including corporate and public-sector pension funds, insurance companies, charities, private banks and other institutional clients. The company will continue to operate under the Lothbury and LIM brand under the leadership of Simon Radford, chief executive.

The LIM management team will remain responsible for the day-to-day operations of the business and "retain full autonomy over its investment strategies".

“Our investment in and partnership with LIM is a significant strategic move for our global investment management business. We are excited about the opportunities we can explore together with LIM, with its outstanding investment capabilities in the UK and its long-standing reputation among UK and international institutional investors” said Eiji Kutsukake, President and CEO of NREHI.

“We are very excited to be joining the Nomura Real Estate Group, whom we believe are the ideal partner to further develop our business. Having the institutional support, international property expertise and distribution channels of Nomura Real Estate Group will enable us to enhance further the operational and investment capabilities of our firm, and, most importantly, ensure that we continue to deliver leading investment performance to our Funds’ investors” said Simon Radford, Chief Executive of LIM.

Deloitte Tohmatsu Financial Advisory and Linklaters acted for NREHI and Spencer House Partners and Travers Smith acted for LIM.

pnorman@costar.co.uk

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