Commercial real estate advisor Avison Young announced this week that it has closed a major financial recapitalisation transaction with approval of 100% of its financial partners.
Under the deal, the company reduced its financial obligations by more than half and secured additional capital to advance its strategic goals. Financial details were kept confidential.
'This transaction marks the start of our next chapter for Avison Young,' said Mark E. Rose, CEO and chair, Avison Young. 'Our financial partners recognise that our principals are the heart of our business, and this deal will drive equity value for our shareholders and Principals, as well as market-based compensation in the years ahead. We are excited about our prospects as we continue to strengthen and reposition our business as the industry recovers, while delivering best-in-class client service.'
Through the deal, Avison Young will have a more sustainable capital structure with a de-levered balance sheet and new money from its financial partners. The company’s principals will retain a significant majority of equity ownership in the company, maintaining the company’s principal-led structure.
As part of the transaction, Avison Young will appoint a smaller, independent board of directors led by Rose as chair. The new board will be announced in the coming weeks.
