GVA considering sell-off or flotation
COMMERCIAL property agent GVA, which has offices in Liverpool and Manchester, could be sold, floated or refinanced in a deal that would value the company at between £120m-£180m, according to reports.
It has appointed corporate finance firm Cannacord Genuity to explore its strategic options and wants to use the cash to grow internationally and provide an exit for LDC, the private equity firm that owns 30% of the company following a debt-for-equity swap last year.
GVA saw pre-tax profits jump to £7.8m, up from £146,000 in 2011-12 and reduced net debt. It has around 150 staff in Manchester and a further 25 in Liverpool.
In a statement chief executive Rob Bould said: “We’re delighted to be working with Canaccord. This builds on the good work we have achieved over the past two years, and marks the next step in achieving our long terms aspirations for major growth and in creating a truly international dimension to our UK facing business.
“The success of our company restructure 18 months ago, coupled with our ability to build on that platform throughout last year with an outstanding end of year, has turned GVA into a much stronger proposition that is now primed for further growth. We have gained market share in high-growth areas, increased fee income and continued to invest in our resilient advisory-led regional model that differentiates us from other UK commercial property advisors. Furthermore we are just 10 months away from being a debt free business. We will continue to build the business along these lines.
“Positive market sentiment built on hard evidence that better times lay ahead here in the UK and globally, means now is an important period in which to invest in our future and gain further momentum. With this in mind, this latest move marks our next logical step for further growth.”
Mr Bould told Property Week that the company expected to know which option would be pursued by Mipim next year. KPMG and law firm DLA Piper are also advising GVA.
