Catella's Property Fund Management (CPFM) arm has agreed to acquire a majority stake in the UK real estate investment and asset management company Apam.
CPFM has agreed to acquire 75% of the shares in Apam for a price of £18 mln (€20 mln), on a debt and cash-free basis. A non-refundable down payment of the purchase price of £2.7 mln was made at signing, while the remaining amount is to be paid in cash upon completion.
Under the agreement, the Swedish financial group is not obligated to complete the transaction which is conditional upon receiving the necessary regulatory approval from the financial supervisory authority in Luxembourg. The deal is expected to complete during the second half of 2018.
Apam is an independent real estate investment and asset manager operating exclusively in the UK market, with a total workforce of 41. It manages £1.4 bn of assets and had revenues of £7 mln in 2017.
'As a leading company within the strategically important UK market, Apam constitutes a key piece in Catella's ambition to build the pan-European platform Catella has built the last years within our property investment management business area, which has been our focus for the last four years,' said Knut Pedersen, CEO of Catella.
Simon Cooke and William Powell, founders and executive directors of Apam, will remain shareholders in the company, each with 12.5% of the share capital and voting power after the transaction.
Apam will continue to be independently run by its current management team and to pursue its growth strategy within the UK.
With APAM, Catella will reach SEK 200 bn in AUM (£18 bn).
'Catella Property Investment Management has continuously strengthened its competitive position over the last years and has experienced an annual cumulated growth rate (CAGR) in AUM of 23% the last three years. This transaction further strengthens our position,' said Timo Nurminen, head of property investment management at Catella.
In connection with the deal, CPFM is being granted a call option to acquire the shares of the minority owners during autumn 2023 at a price to be calculated through a pre-set formula depending on future profit development.
Simon Cooke, founding shareholder and executive director, said: 'This transaction brings together two great names in property investment management and Catella’s strategic investment provides us with an even stronger platform for growth. Will and I will continue to lead and drive the APAM business - it will be very much ‘business as usual’.'
