MAM talks to Greycoat team

THE MANAGEMENT of Greycoat is in talks with Mercury Asset Management (MAM) about a possible buyout of the central London property developer.

MAM, which has a stake in Greycoat's most famous property Tower 42 in the City (formerly known as the Nat West Tower), is expected to make a bid that will see the management retained and offered a share in the equity.

A source close to the deal said: "Although a number of people were prepared to offer management participation, they [Greycoat] are now on the point of doing a deal with a particular institution. The structure of the deal means that management will have participation in the equity."

Greycoat put itself up for sale last week following a hostile pounds 218m bid by Delancey Estates, the property group run by Jamie Ritblat, son of British Land's John Ritblat. The financier George Soros controls nearly 60 per cent of Delancey.

Delancey's all-paper bid was rejected as "derisory" by Greycoat. Analysts say it is looking for a bid of up to pounds 300m for the company, which last week reported a net asset value of 283p per share. The sale process is being arranged by NM Rothschild, with tenders invited by 19 May.

Peter Thornton, the chief executive of Greycoat, said: "It became clear very early on that certain parties going to tender wanted the possibility of retaining some or all of management. Of course we'd prefer someone to retain management and save our jobs, but the highest cash bid will win the day."

Analysts and industry observers said that the deal with MAM, reported in property magazine Estates Gazette, seemed logical and beneficial to both sides.

Ian Henderson, chief executive of Land Securities, one of the companies tipped to enter the bidding, said: "It doesn't surprise me because a number of funds are looking for more direct exposure to property. It's got quite a lot of logic to it."

A property director with a leading life fund said the deal reflected a structural change in property investment in the UK, with fund management houses increasingly looking to absorb property companies into their businesses.

"We've seen it with Hermes taking over Argent and more recently with Pricoa and Arlington, and there'll be more companies seeking to sell themselves to life assurers. It means the listed property sector will shrink," he said.

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?
Season's finale brings the end of an era for top coaches and players across the continent

The end of an era across the continent

It's time to say farewell to Klopp, Clement, Casillas and Xavi this weekend as they move on to pastures new, reports Pete Jenson
Bin Laden documents released: Papers reveal his obsession with attacking the US and how his failure to keep up with modern jihad led to Isis

'Focus on killing American people'

Released Bin Laden documents reveal obsession with attacking United States
Life hacks: The innovations of volunteers and medical workers are helping Medécins Sans Frontières save people around the world

Medécins Sans Frontières's life hacks

The innovations of volunteers and medical workers around the world are helping the charity save people
Ireland's same-sex marriage vote: As date looms, the Irish ask - how would God vote?

Same-sex marriage

As date looms, the Irish ask - how would God vote?
The underworld is going freelance: Why The Godfather's Mafia model is no longer viable

The Mafia is going freelance

Why the underworld model depicted in The Godfather is no longer viable