Pradera, a pan-European retail fund specialist and asset manager, has sold a minority share in the €2 bn business to global multi-family office LJ Partnership, PropertyEU has learned.
The size and financial details of the long-term strategic investment have not been disclosed. But both sides say LJ Partnership's 'significant' minority stake will help drive substantial growth at Pradera and lead to entry into new retail property segments and markets.
Pradera's managing director David Fletcher commented, 'This significant investment marks the beginning of another exciting phase for Pradera that should take the company into new segments of the retail market and over time into new geographies. It should help drive growth and allow us to further improve our service to clients and investors alike.'
LJ Partnership’s largest shareholders are family offices and businesses from Hong Kong and Latin America, he added. 'This [stake] will take the business into the family office market, supplementing, but not competing with, our historic strong institutional client base,' he said.
Andrew Williams, CEO of LJ Partnership, said: 'We share a common focus and strong track record in real estate management and investment but also have different strengths in terms of geographical reach and the capital that we manage. This collaboration comes at a time that LJ Partnership is enjoying rapid growth. It will broaden and deepen our European platform, enhancing our local presence in major European markets and enable us to bring a broader range of investment opportunities to the select group of individuals and families that we represent.'
Management board changes
Two senior directors from LJ Partnership will join Pradera's management board. The other shareholders include the current senior Pradera management team, which retains full control of business strategy and the day-to-day running of the business.
Paul Whight will resign from Pradera's board on completion of the transaction, marking the end of his involvement with the company he founded with Colin Campbell in late 1999.
Pradera manages a €2.3 bn portfolio comprising over 50 shopping centres and retail parks in the UK, Spain, Italy, Greece, Germany, Poland, the Czech Republic and Turkey. The properties accommodate more than 2,000 tenants.
LJ Partnership is a privately held multi-family office that operates globally to manage the investments of individuals, family offices, foundations and charities. The firm's real estate platform advises on a portfolio valued at around $4 bn (€3.5 bn).
Management buyout
LJ Partnership’s investment comes a year after an internal management buyout at Pradera ended speculation that it was to be sold to a third party.
The buyout on 8 April 2015 involved a company controlled by the Colin Campbell Family Trust acquiring Paul Whight's controlling stake in Pradera for an undisclosed sum. Colin Campbell, who had at various times served in the positions of managing director, chairman and CEO, was re-appointed chairman. Whright continued as a non-executive director, a position he had held from 2012.
Commenting on the decision to form the strategic partnership with LJ Partnership, Campbell said, 'It demonstrates strong faith in Pradera's management team, its current strategy and its growth potential. LJ Partnership has an excellent track record of investing in real estate and real estate management platforms and we look forward to working with them closely in the future.'
The transaction has received regulatory approval and is expected to complete shortly.
