Macquarie Buys UK Firm for $350M

LONDON-Macquarie Goodman Group has bought Arlington Securities for euro 297 million ($352 million). “This will make us the second largest business space specialist management platform globally,” Macquarie Goodman says.

The business park developer is being bought for euro 242 million ($287 million) while the investments in Arlington managed funds are being bought for approximately euro 96 million ($65 million). As part of the deal, Macquarie Goodman intends to invest an additional euro 297 million ($352 million) in seed capital to accelerate the establishment of new UK and European funds.

“This is an extremely exciting opportunity for us all at Arlington in terms of global synergies and growth prospects,” says Patrick Deigman, chief executive of Arlington Securities. “In terms of existing customers and clients, they can be sure that they will continue to receive the same excellent service and performance with our team now able to provide a wider range of investment and service products across a wider geographical spread with potential added benefits to them as we move ahead.”

Arlington has euro 9.9 billion ($11.8 billion) of funds under management including euro 4 billion ($4.7 billion) of business park and logistics accommodation.

The acquisition increases Macquarie Goodman’s business space funds under management by 75%. Completion is due at the end of December.

“This will make us the second largest business space specialist management platform globally,” says Greg Goodman, CEO of Macquarie Goodman. “In addition to the compelling commercial benefits, the deal is really based on the strong cultural fit with a similar customer philosophy. The Arlington staff [is] committed to the business and we look forward to realizing its full potential with the backing of the Macquarie Goodman balance sheet.”

Patrick Deigman will remain as CEO of Arlington Securities with a continued mandate spanning UK and Europe. He has committed to remain with the group for five more years.