UK/MIDDLE EAST - Abu Dhabi sovereign wealth fund (SWF) is to pump £200m (€250m) into London & Stamford via a seven-year joint venture aimed at building a war chest for UK acquisitions.
A spokesman for the UK property firm said the joint venture would "add to [its] firepower" to make it possible to do bigger and better deals.
Under the deal, the sovereign wealth fund's subsidiary Cavendish will have an 80:20 equity option in potential acquisitions worth more than £150m but could act on its own on any deal worth up to £30m.
The scheduled end of the seven-year joint venture will coincide with a vote among London & Stamford shareholders of whether to continue the business.
When asked if there were additional advantages other than the joint venture would provide liquidity, London & Stamford non-executive director Patrick Vaughan described the deal as "one hell of an advantage in the current market".
He said Cavendish took a similar view of the market and opportunities in the UK notably, suggesting it has yet further to fall.
London & Stamford's portfolio is largely UK-based, with an additional Belgian retail portfolio.
That said, no acquisitions are imminent.
"It takes months to set up a deal like this," said Vaughan. "We didn't want to see opportunities and not be ready."
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