Slough Estates International ("SEI"), has agreed heads of terms to acquire the Central European property development operations of Grontmij - a leading European engineering firm - for a provisional 19.5m, with an option to buy further development operations in Italy for a provisional 3.5m plus debt.
The transaction would expand SEI's core European sectors (logistics, light industrial and suburban office) into strategic locations in Poland, the Czech Republic and Hungary and also give it an option to move into Italy. The business includes a highly respected team of staff based in both Central Europe and in Holland.
SEI's Managing Director in Europe, Walter Hens, said "These businesses would give SEI up to 170 hectares of well located development land in attractive new geographies - and a strong team with excellent local knowledge. For strategic reasons Grontmij are exiting these businesses - the timing should work well for SEI, with sites assembled, zoned, serviced and ready for development.
This transaction would complement SEI's June 2005 entry into the Dutch market with the acquisition of a majority shareholding in Mainland BV - that move also gave us strong local talent, and a significant pipeline of development opportunities including key locations around Schiphol Airport."
The signing of these heads of terms was announced yesterday because this is now a discloseable situation for Grontmij - the transaction is still subject to due diligence and to contract. On completion SEI would publish more detailed information on the assets being acquired.
Source: Slough Estates