Warrington-based Langtree is acquiring the 30% stake Merseyside-based Network Space has held in its in its developer and asset manager business for the past four years. Tony McDonough reports
North West property firms Langtree and Network Space have finally severed ties in a deal worth more than £2m.
Warrington-based Langtree is acquiring the 30% stake Merseyside-based Network Space has held in its in its developer and asset manager business for the past four years. It gives Langtree board members full control of its equity.
Langtree was formed in its current guise four years ago with group chief executive John Downes leading a management buyout of the public sector joint venture interests and brand name of the then Langtree Group.
Land in the ownership of the original company, a significant property portfolio and the property management functions, were retained within the rebranded Network Space which also held 30% of the equity in the new Langtree.
Langtree focuses on long-term strategic partnerships with local authorities and government agencies, with a stake in Sci-Tech Daresbury, as well as providing asset management services to large pension funds. These shares have now been purchased in an amicable transaction described by Mr Downes as “a good deal for both parties”.
“It has been a good relationship. Network Space was a founding investor of our business, injecting equity and loan capital alongside my team and allowing us to hit the ground running,” explained Mr Downes.
“Its support was key to our success and I’m obviously pleased that we’ve managed to generate the cash in the business to acquire the shares. We’ve grown substantially in the four years since the MBO and so Network Space has achieved a good return from its initial investment.”
Network Space continues to develop new industrial property across the North of England, funding and completing more than 400,000 sq ft across 14 buildings in the last 18 months alone. It has secured land interests to deliver a further 1.5m sq ft over the next five years.
Its chief executive and chairman, Richard Ainscough, added: “We retained a financial interest in the new company as we were confident that the personalities involved would drive the business forward and deliver for us an investor. Langtree has gone from strength to strength and it’s a great credit to the whole team that the business is in such good shape.”