APAM agrees strategic partnership and major investment from Catella

By Paul Norman - Tuesday, March 13, 2018 1:00

APAM, the independent UK real estate asset and investment manager, is to become part of the Catella group of companies with completion of the transaction, with sees Catella buy 75% of APAM for £18m, subject to regulatory approval.

Catella is a leading European specialist in property investment, fund management and banking, with operations in 14 countries; it is listed on Nasdaq Stockholm in the mid cap segment. Catella and APAM will have combined assets under management of circa £18bn.

Under the terms of the transaction, Catella AB through Catella Property Fund Management (CPFM) is acquiring 75% of the share capital of APAM for a total consideration of £18 million, on a debt and cash free basis.

APAM’s founder shareholders and executive directors, Simon Cooke and William Powell, will own the remainder of APAM’s equity and are committed to the company for at least another five years.

David Russell, on completion, will step down as a non-executive director and sell his stake in APAM to focus on his business interests in Manchester and the North West.

APAM will continue to pursue its UK growth strategy and will be independently run by its management team, led by Simon and William. The co-operation between Catella and APAM will start immediately. Management from both companies anticipate significant opportunities to strengthen their offering to international investors by leveraging the combined pan-European reach the two companies can provide.

Simon Cooke, founding shareholder and executive director, said: “This transaction brings together two great names in property investment management and Catella AB’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’. We have enjoyed building APAM over the last eight years and look forward to working with Catella AB to leverage the new opportunities that this partnership brings.”

William Powell, founding shareholder and executive director, added: “Joining forces with Catella AB, marks the start of an exciting new chapter in APAM’s development, providing our clients with access to best-in-class advisers across 15 countries and an even more extensive range of services. By combining our strengths, this strategic partnership delivers significant potential to grow our business and our international client base, as well as opportunities for our team.”

Knut Pedersen, CEO of Catella AB, said: “As a leading company within the strategically important UK market, APAM constitutes a key piece in Catella’s ambition to build a pan-European platform within our Property Investment Management business area, which has been our focus for the last four years.”

Timo Nurminen, Head of Property Investment Management at Catella, said: “Catella Property Investment Management has continuously strengthened its competitive position over the last years. We are impressed by the strong risk adjusted return APAM generates for its clients and are delighted to expand our offering for our clients in UK. Catella’s clients, in particular our Asian office’s, will be able to expand their pan-European allocation with a significant share allocated to the UK.”

The Real Estate M&A team at PricewaterhouseCoopers led by Simon Hampton and Mark Gunalan acted as financial advisors to APAM Ltd and its shareholders. EY advised Catella AB on the acquisition. Forsters and Reed Smith were legal advisors to the sellers and buyers respectively.

Simon Hampton, Real Estate Deals Leader at PwC, stated: “The acquisition of a majority shareholding in APAM Ltd by Catella AB is of strategic significance to both parties. We (PwC) were able to leverage our network to find Simon Cooke and William Powell, the co-founders and remaining shareholders of APAM a strategic partner in Catella AB to drive the next phase of APAM’s growth priorities. This transaction is an example of the continuing theme of consolidation within the global Real Estate Investment Management industry.”

pnorman@costar.co.uk

 

 

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