17th Sep 2014 07:04
LONDON (Alliance News) - Intermediate Capital Group PLC Wednesday said it has exercised its option to acquire the 49.255% of Longbow Real Estate Capital LLP it doesn't already own from the LLP's eight individual partners.
In a statement, the specialist asset manager said it will pay GBP13.0 million on completion of the acquisition, which is expected in October. A further deferred payment of an estimated GBP24.0 million will be payable to the partners in 2016.
Intermediate Capital Group acquired its initial 50.745% interest in the LLP in March 2011 from a combination of third-party investors representing a 35% stake and partners representing a 15.745% stake. It bought the initial stake for GBP4.3 million in order to add direct real-estate finance to its portfolio of specialist mezzanine and senior debt investment strategies.
Intermediate Capital said it has invested or committed more than GBP150.0 million of balance sheet capital as co-investments in ICG-Longbow's funds since the acquisition. From the same point, ICG-Longbow has raised more than GBP1.3 billion of discretionary capital across four funds; invested more than GBP1.1 billion of fund capital in UK real estate financing transactions; established a senior debt strategy, which accounts for over one third of fund commitments; and expanded the team to 22 from 10.
ICG-Longbow currently has more than GBP1.0 billion invested across its funds and in excess of GBP200.0 million of transactions in closing, according to Wednesday's statement.
"In the ordinary course of business, it is expected that successors to its senior debt strategy and whole loan/mezzanine funds will be launched within six months," Intermediate Capital Group said.
The specialist asset manager's chief executive said Intermediate Capital Group's business model is underpinned by launching and developing new strategies that utilise the best of its investment expertise, specialist local knowledge and relationships, and said the 51% acquisition of ICG-Longbow in 2011 initiated the acceleration of this strategy.
"I am delighted to be completing the acquisition of the balance of ICG-Longbow now, as the potential of the business is even greater today than it was in 2011. I am sure that the ambitions, depth of specialist knowledge and expertise of the committed and incentivised ICG-Longbow team will allow this potential to be fully realised," Chief Executive Christophe Evain said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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