Stanhope PLC - General - UK, Stanhope Sells 15% Stake to Mitsui Fudosan
Date: 05 Oct 2006
Stanhope announced today the final chapter in the company's re-organisation, led by Chief Executive and principal shareholder David Camp.
Mitsui Fudosan (UK) Ltd, the UK arm of Mitsui Fudosan Co. Ltd, an international blue-chip enterprise and Japan's leading property company, has taken a 15 per cent stake in Stanhope. This completes the restructuring that began in May, when property entrepreneur and business angel Ian Laing and his partner Nick Cross also took a stake in Stanhope.
Under Stanhope's new structure the majority of the company (65%) is still owned by David Camp and the management team. The introduction of a complementary balance of shareholders, in Mitsui Fudosan and Ian Laing/Nick Cross, will provide Stanhope with access to new capital sources, contacts, business opportunities and expertise.
The management team will retain its independence, allowing the company to continue flourishing as an entrepreneurial developer. This emphasis on management ownership and control is an important foundation that will underpin Stanhope's corporate culture, long-term growth and independence.
For Mitsui Fudosan, the investment marks the culmination of its search for a preferred UK development partner and is consistent with its strategy of working with leading local partners who complement their business strategy and expertise.
Stanhope's primary focus remains the development of headquarters buildings and mixed-use masterplanned projects in Central London and south-east England. The additional funds supplied by Mitsui Fudosan, together with those already made available by Ian Laing and Nick Cross, provide Stanhope with the capital base, combined with the company's expertise, to further advance the company's growth.
Motomitsu Morimoto of Mitsui Fudosan joins the Stanhope board as a non-executive director, joining fellow non-executives Ian Laing, Peter Rogers and chairman Oliver Stocken.
Mitsui Fudosan is a significant developer of office, retail, residential and mixed-use schemes with a reputation for funding and delivering some of the most important real estate projects in Japan and shares Stanhope's commitment to partnership, quality, vision and innovation.
While Mitsui Fudosan will collaborate with Stanhope on various future projects, both firms will also continue to work with and maintain their long-term relationships - Stanhope with a range of key partners including Bovis Lend Lease, British Land, ING Real Estate, Legal & General, MEC, Mitsubishi Corporation, Morley Fund Management and Schroders.
David Camp, Chief Executive of Stanhope said: "With the introduction of Mitsui Fudosan as partner and shareholder, the company is now in a strong position to begin the next chapter in its evolution and we are greatly excited about taking the company forward with our first class team of partners and employees. The ownership structure which is now in place will provide long-term stability as Stanhope embarks on a period of growth."
Motomitsu Morimoto, Managing Director of Mitsui Fudosan (UK) Ltd commented: "We are truly excited about this partnership with Stanhope, which will be an important strategic platform for us to expand our business in the UK. With a skill set and culture that complements our own, we believe that the Stanhope team will be an ideal partner for us. Stanhope has enjoyed success with its existing partners and we look forward to contributing to this.
London is a key global market for Mitsui Fudosan and our relationship with Stanhope will give us access to their considerable expertise in sourcing and delivering development projects here."
Jones Lang LaSalle advised Stanhope on this transaction, while UBS acted for Mitsui Fudosan.
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