Derwent Valley has sites across the capital from Paddington to the former Companies House building on Old Street roundabout. The company's chairman John Ivey confirmed that he was meeting with REIT Asset Management, advisers to Noe and his family, to discuss a "possible offer for the entire share capital of Derwent". The City responded well to the news and the market value of Derwent shot up £22 million ($37.4 million) to £395 million ($671.4 million) at one point in trading yesterday.
REIT and Noe are understood to have sufficient financing in place to fund what is effectively a move into the London office market. REIT partner Kevin McGrath said: "We have been making a strategic push into central London and offices offer good value over the medium to long term. The approach to Derwent Valley is a further extension of that strategy."
Noe has built up a 2.87% stake in Derwent over the past couple of months through Winten, a buying company for his family's Gibraltar-based trust funds, Trafalgar Overseas. REIT has been an aggressive buyer of offices and UK shopping centres over the past couple of years on behalf of the Noes. It is in exclusive talks, again for Noe, with Taylor Woodrow over the £290 million ($492.9 million) acquisition purchase of St Katharine Docks near Tower Bridge.
Derwent Valley Holdings said it has not received an offer proposal from Winten Ltd but confirmed that it would be meeting with Winten's advisers REIT Asset Management.
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