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GE Real Estate Wins Benchmark With $800M Bid

LONDON-GE Real Estate has snapped up specialist West End investor Benchmark in a deal valuing the company at $820 million.

By Graham Parker | Updated on April 06, 2004

LONDON-GE Real Estate is taking over the specialist West End developer and investor Benchmark Group with an offer valuing the company at £450 million ($820 million). GE is paying 280p per share–or £273 million ($500 million)–for the outstanding share capital, and it has already received acceptances from the two major shareholders, Friends Provident and Guoco Land, speaking for 72% of the equity. In addition it is paying £51.5 million ($95 million) for unsecured loan stock, and assuming £125 million ($225 million) of other debt.Benchmark was formed in 1996 by chief executive Nigel Kempner, who put together the West End assets of Friends Provident and Hong Kong-based Guoco Land to create the portfolio. The company currently controls 1.8 million sf of space; about 80% offices and the remainder retail, but in recent years it has suffered because of the depressed state of the central London office market.Earlier this year chairman Tan Sri Quek Leng Chan announced a strategic review of the business, in the light of depressed market conditions. He says that the sale “crystallises immediate and good value for the company’s investors.”Alec Burger, managing director of GE Real Estate UK says: “Benchmark offers a good opportunity to increase our exposure to the West End market of London by acquiring a West End property portfolio which has been developed and managed by a respected specialist team. It is also highly complementary to our existing portfolio in the UK.”

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