Developer ASK in talks with private equity firm

ASK, the North West property developer, is in talks with a private equity firm in a bid to bring new finance into the business.

The Salford-based company, which is suffering due to the financial crisis, the collapse in asset values and the general recession, is in talks with North West fund Infinity Asset Management, which is led by former accountant Daniel Finestein.

A statement today said: “Ask Developments and Infinity Asset Management confirm that both parties are exploring options under which Infinity may invest in Ask Developments.

“Talks are at a preliminary stage and there is no guarantee that a stake in Ask will be taken, but Infinity believes Ask boasts both an outstanding management team and an exciting portfolio of development projects and sites.”

Led by chief executive Ken Knott, ASK has been behind some major developments including Deansgate Locks in Manchester. It has just completed the first phase of its ambitious First Street development in the south of the city centre.

In December Mr Knott, who founded ASK in 2000 with architect Simon Bate and Simply Red manager Andy Dodd, described 2008 as “the most difficult business year” of his life.

He said:  “We are forecasting a really grim couple of years and no material improvement before 2011”.

He said the company, which is already part-owned by US bank Morgan Stanley, had been forced to cut costs, cease any speculative development, and “rip up its business plan”.

A deal between ASK and Infinity would reunite Les Lang, founder and ex-managing director of the developer’s  residential arm Abito, with his former colleagues.

Mr Lang joined Infinity on 14 months ago to manage its £100m property fund set up to target commercial and residential properties in the downturn.