Kilmartin acquires Amerdale resulting in £100 million European expansion

Kilmartin, one of Scotland’s biggest property firms Kilmartin has acquired the Amerdale Group in a deal that will result in a £100 million expansion into Europe. Kilmartin will also acquire Amerdale’s London-based investment management fund.

Amerdale will now merge its London office into the Kilmartin Group before opening a new office in Berlin that will concentrate on Europe’s fast-growing commercial property sector. Amerdale operates primarily in the investment and industrial sectors of the UK.

The newly-formed group will employ over 50 staff and will have offices in Edinburgh, Inverness, Sheffield and London. Over the last 2 years, the group has sold £400 million worth of investments and developments.

Iain Wotherspoon, Kilmartin’s founder, will become executive chairman while Amerdale’s boss Mark Hancock will take on the role of group chief executive. Kilmartin highlighted that the group has already secured 5 major deals in Europe and the objective is to build the European business by 30% in the next 5 years.

Kilmartin added that the majority of people in this sector are selling but they are growing. This deal has resulted in 3 new directors, a new chief executive and £200 million worth of new business. The company aims to spend €100 million in Europe during 2007 while also planning expansion in France and Asia.

In early 2007, Iain Wotherspoon sold 50% of Kilmartin to HBOS in a deal thought to value the company at £75 million. HBOS is a long-standing financial supporter of Kilmartin, which has a development programme worth £1.1 billion and has been a keen investor in commercial and residential property.

Mark Hancock, the new chief executive commented that the last 9 months have been spent building up a contacts base in France and Germany.

Current Kilmartin projects include the redevelopment of the former Lothian regional council offices on George IV Bridge in Edinburgh into a boutique hotel and a £70m retail facility at Loch Lomond Shores. The development will be completed in 2008 and will comprise a bank branch and a 130-room luxury Radisson Hotel.

Story link: Kilmartin acquires Amerdale resulting in £100 million European expansion