Japan's Nomura buys out UK's Lothbury

Japanese real estate group Nomura Real Estate Holdings (NREHI) has inked a deal to take over UK real estate investment manager Lothbury Investment Management Group (LIM), acquiring a majority interest of 75% in the firm, with 25% remaining in the hands of the LIM management team.

Financial details were not disclosed.

'Our investment in and partnership with LIM is a significant strategic move for our global investment management business. We are excited about the opportunities we can explore together with LIM, with its outstanding investment capabilities in the UK and its long-standing reputation among UK and international institutional investors,' said Eiji Kutsukake, president and CEO of NREHI.

Nomura Real Estate Group has already invested in companies in Vietnam, Thailand, China and the Philippines. NREHI owns a JPY1.4 tn (€10.4 bn) investment management business, Nomura Real Estate Asset Management (NREAM).

LIM, which has £2.1 bn (€2.37 mln) of assets under management, specialises in managing property portfolios across a range of funds, including its flagship Lothbury Property Trust.

The company will continue to operate under the Lothbury and LIM brand under the leadership of Simon Radford (pictured), chief executive. The LIM management team will remain responsible for the day-to-day operations of the business and retain full autonomy over its investment strategies.

'We are very excited to be joining the Nomura Real Estate Group, whom we believe are the ideal partner to further develop our business. Having the institutional support, international property expertise and distribution channels of Nomura Real Estate Group will enable us to enhance further the operational and investment capabilities of our firm, and, most importantly, ensure that we continue to deliver leading investment performance to our funds’ investors,' Radford commented.

The transaction, which is expected to close before year end, is subject to customary regulatory approvals and closing conditions.

Deloitte Tohmatsu Financial Advisory LLC and Linklaters acted for NREHI and Spencer House Partners and Travers Smith acted for LIM.


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