Urban&Civic is pleased to announce the acquisition of Catesby Property Group plc, a well-established, planning led, strategic land company set up in 1996 by Eric Grove.
Catesby is based in Warwickshire and has specialized in residential land promotion and commercial property development since inception. Urban&Civic’s intention is to develop Newark in accordance with the strategic business model of selling serviced plot parcels, having invested in infrastructure and high quality public realm.
Following an extensive due diligence process the aggregate purchase consideration has been agreed at £34 mln (approx. €46.7 mln) for the entire issued share capital of Catesby, payable as to £22 mln (approx. €30.2 mln) in cash, financed through existing resources and £12 mln (approx. €16.5 mln) to be satisfied through the issue of 4,248,553 new, fully paid up, ordinary shares in Urban&Civic and 177,697 awards under the Urban&Civic Performance Share Plan.
The Company expects the acquisition to be asset and materially earnings accretive in the current year. The gross property assets which are the subject of the transaction total £34.5 mln (approx. €47.4 mln) as at 31 December 2014 including fair value adjustments. The Company will be required to fair value all of Catesby’s assets and liabilities for the purposes of the acquisition accounting and expects to recognize a credit to the income statement in the half year results as at 31 March 2015 of approximately £5 mln (approx. €6.9 mln), reflecting negative goodwill arising on the transaction.
Nigel Hugill, Executive Chairman, described his pleasure at the continuing progress being made by Urban&Civic: “This is a very happy outcome for both companies. Catesby has achieved consistent, planning led success over almost 20 years and incorporation within Urban&Civic will enable the key Newark project to be developed in accordance with our business model that invests early in community infrastructure and public realm. Eric Grove brings a wealth of knowledge and experience and is a most welcome addition to our shareholder base.”