Two directors of Edinburgh-based property developer Quartermile Developments have launched a new development company following a successful management buyout (MBO).
CEO Paul Curran and finance director Mike Milligan have purchased the entire share capital in Quartermile Edinburgh Limited (QMEL) from MREFIII, a value-add fund managed by London-based property fund manager Moorfield Group and funds advised by Boston-based hedge fund Baupost for an undisclosed amount.
QMEL comprises the Quartermile Developments, Quartermile Estates and Quartermile Ventures operating companies.
Quartermile Developments is the company behind Edinburgh city centre’s landmark £750 mln (€854 mln) Quartermile mixed-use development. The company is also currently building 145 homes at its 52-acre, £100 mln Craighouse development in the Scottish capital.
The new holding company is called Qmile Group and is headquartered in the Edinburgh city centre. All Quartermile Developments’ 17 employees remain with the business.
Moorfield Group and Baupost took over the business in late 2013.
Qmile Group's CEO, Paul Curran, said: 'With the final phases of Quartermile nearing completion it was natural for us to consider future opportunities. We now look forward to further implementing our strategic growth plans for Qmile Group. We are already exploring a number of mixed-use, residential and commercial opportunities and assessing various funding opportunities.'
Qmile Group will initially have a Scottish focus, but its ambition is to expand across the key cities in the UK, added Curran. 'We are widely known for our ability to deliver high profile, complex projects, and we believe this gives us the strongest possible position upon which to continue to build our business and brand.'
Quartermile currently comprises 1,050 apartments; 370,000 sq ft (34,400 m2) of office accommodation; 65,000 sq ft of retail and leisure space; and seven acres of open landscaping. The development will also be home to the Edinburgh Futures Institute, the University of Edinburgh’s new interdisciplinary hub.
Law firm Brodies advised Qmile Group, whilst MREFIII and Baupost were represented by Herbert Smith Freehills and Ropes & Gray.