Peel and Warren James exit Pinewood Studios in £323m deal

THE owner of Pinewood Studios has been sold to a real estate private equity fund for £323m, marking an exit for major North West-based shareholders Peel and Warren James.

Buckinghamshire-based Pinewood Group delisted from the AIM market earlier this month with shares at £5.60, having accepted an offer from PW Real Estate Fund III, run by the French property investor Leon Bressler.

A subsidiary of Manchester-based Peel Holdings, called Goodweather Investment Management, was the largest shareholder at 39.09%, a situation that dates back to 2011 when it launched a takeover bid at £2 a share which was stymied by Stockport-based Warren James.

The jewellery company owned by siblings Ann Jones and John Coulter built its stake to 26% offering slightly more than £2 and ultimately blocking the takeover.

Completion of the deal sees major shareholders Peel and Warren James take home £126m and £84m respectively.

Peel sold a 20% stake in April last year, cutting its stake from 58.1% to 39.09% and netting it around £38.5m at the time.

At the same time, the Isle of Man government halved its share from 9.9% to 4.99% (it made around £16m from the final sale this month).

This was to enable Pinewood to raise £30m through a share placing to fund the first phase of a major expansion project, adding 300,000 sq ft of new facilities including five new sound stages.

But Pinewood said that the share placing had failed to gain enough new investors and diversify its shareholder base, stifling its ambitions.

It said that because its shareholder register remained “tightly held” – Peel, Warren James and the Isle of Man government had 70% between them – its ambition for a main market listing was being held back.

Corporate finance advisers from investment bank Rothschild were appointed in February of this year to lead a strategic review and then sale. In a stock market announcement at the time, Pinewood Group said it was looking to “maximise value” for investors.

The new owner has stated that it does not intend to separate Pinewood’s property portfolio from its operating business and will invest to speed up the group’s existing expansion plans, with the management remaining in place.

Pinewood group’s film studios have been home to some of the best-known films of the 20th century, including James Bond, Star Wars and Tomb Raider.

As well as Pinewood Studios, the group includes Shepperton Studios and Pinewood Studio Wales. It also has an international network of studios in countries including Canada and the Dominican Republic.

James Sheridan, corporate managing partner at law firm Turner Parkinson and his team have advised Warren James throughout its investment in Pinewood. Addleshaw Goddard in Manchester advised Peel on its investment.

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