UK - The Australian Macquarie Goodman group is acquiring UK-based Arlington Securities in a deal to be completed on December 23.
The transaction values the Arlington business at £163m (€242m). A spokesman claimed the companies were attracted to each other due to a mutual interest in business parks and logistics sites.
In addition to the purchase, Macquarie Goodman is acquiring investments in Arlington’s managed funds to the tune of £37m and the group intends to commit an additional £200m in seed capital for the establishment of new funds.
Patrick Deigman, chief executive of Arlington Securities was unavailable for comment. But in a written statement he said: “This is an extremely exciting opportunity for Arlington in terms of global synergies and growth prospects.
“Our approach has always been to deliver exceptional value to our customers and shareholders and the merger reinforces this.”
Arlington has a 24-year investment history and boasts 260 employees across offices in London, Reading, Glasgow, Amsterdam, Paris and Madrid.
A spokesman said there would be no staff redundancies arising from the deal.
Greg Goodman, chief executive of Macquarie Goodman, said: “Arlington’s similar customer service philosophy, its award-winning management team and high quality business space portfolio provides a strong cultural fit.”
Arlington has £6.7bn in funds under management of which £2.7bn is in business parks and warehouses. The acquisition will increase Macquarie Goodman’s business space funds under management by 75%.
Mr Goodman said: “The deal will give us the second-largest business space management platform globally. The Arlington staff are committed to the business and we look forward to realising its full potential with the backing of the Macquarie Goodman balance sheet.”
Thirty percent of Arlington’s shares are owned by its staff, including Deigman. He will remain chief executive of Arlington with a continued mandate for the UK and continental Europe. He has committed to remain with the expanded business for five years.
Macquarie Goodman is listed on the Australian Stock Exchange and has operations in Australia, New Zealand and Asia. The group encompasses property investment, fund management, property development and property services.
Would-be London Stock Exchange purchaser Macquarie Bank has a shareholding in Macquarie Goodman but the latter remains a separate company and operates independently.