Private equity backed £80m restructure for property group

Doncaster-based property business Empire Group has successfully restructured its debt finance with £80m of backing from an international private equity fund.

The restructure has allowed all associated companies, special purpose vehicles (SPVs) and portfolios to align closer from a cost and operational perspective.

The deal forms part of Empire’s strategic plans for growth, providing the financial backing to fund ongoing acquisitions and developments which will include expansion into new build developments.

Yorkshire-based entrepreneur, Paul Rothwell, formed his initial business, Empire Property Concepts (EPC) in 2009 immediately after graduating from university.

EPC developed an effective property investment model based on commercial to residential development conversion allowing clients to invest in high yielding property.

At the time of the restructure, EPC had a portfolio of 1,500 units and a further 1000 under development.

With fellow director, Rick Barrow, Rothwell formed Empire Property Holdings (EPH), a property investment model, offering loan note offers (mini bonds) in 2016. Through EPH, the pair were able to purchase much larger commercial properties and convert them into buy-to-lets using permitted development rights.

EPH launched three mini-bonds, raising a total of £35m. The pair acquired 11 buildings which will deliver around 700 units.

Commenting on the deal, Rothwell said: “We are delighted to be able to evolve the brands into one and take the business forwards to the next stage of its development.

“The restructure puts us in a great place and allows us to bring our ambitious growth plans to fruition.

“We have enjoyed success to date and are excited to be building on this in the future.”