Arlington Securities has announced a merger with Australian property services and investment management business Macquarie Goodman Group. Completion is due at the end of December.
Macquarie Goodman is acquiring the Arlington business for an enterprise value of £163 mln. In addition they are also acquiring investments in Arlington managed funds for approximately £37 mln. As part of the deal Macquarie Goodman intends to invest an additional £200 mln in seed capital to accelerate the establishment of new UK and European funds.
Patrick Deigman, Chief Executive of Arlington Securities said: "This is an extremely exciting opportunity for us all at Arlington in terms of global synergies and growth prospects. Our approach has always been about delivering exceptional value to our customers and shareholders and the merger reinforces this approach. In terms of existing customers and clients, they can be sure that they will continue to receive the same excellent service and performance with our team now able to provide a wider range of investment and service products across a wider geographical spread with potential added benefits to them as we move ahead."
Macquarie Goodman is an integrated property group, listed on the Australian Stock Exchange, with operations in Australia, New Zealand and Asia encompassing property investment, funds management, property development and property services. Macquarie Bank have a shareholding in Macquarie Goodman however they are a separate company to Macquarie Bank and operate independently.
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Greg Goodman, CEO of Macquarie Goodman, said: "We are delighted to be combining forces with Arlington. The growth prospects for the business in the UK and Europe are very exciting as are the revenue synergies that we can derive from our increasingly global and investor and occupier base"
Arlington has £6.7billion of funds under management of which £2.7billion is business space (business park and logistics). This will increase Macquarie Goodman's business space funds under management by 75%.
Mr Goodman continued: "This will make us the second largest business space specialist management platform globally. In addition to the compelling commercial benefits, the deal is really based on the strong cultural fit with a similar customer philosophy. The Arlington staff are committed to the business and we look forward to realising its full potential with the backing of the Macquarie Goodman balance sheet"
Patrick Deigman will remain as CEO of Arlington Securities with a continued mandate spanning UK and Europe; he has committed to remain with the group for five more years.