F&C and REIT join forces
22 July 2008

Written by Sophie Baker

F&C Asset Management’s property operations in the UK and Ireland have been combined with REIT under a new brand, F&C REIT.

The new brand will have £8.5bn of assets under management, and will be focused on commercial property investments in the UK and Europe. F&C will have a 70 per cent ownership interest, and REIT 30 per cent in the combined business, and F&C will pay the owners of REIT consideration of £25million cash and £35million loan notes.

REIT’s ownership proportion has the potential to increase to 40 per cent over the period to 31 December 2014, should F&C REIT meet certain EBITDA performance targets for the combined business.

Alain Grisay, chief executive of F&C, said: “This transaction is consistent with the development of our multi-specialist business model and the strategic direction of our three year plan. It will increase our geographic scope, widen our product range and deepen our expertise in property asset management which is a core long term asset class for our clients. The combination should be significantly value enhancing for our shareholders.”

The transaction is conditional on the approval of F&C shareholders.