Max Property (MAX), the property investment vehicle managed by Prestbury Investments, is proposing to sell its entire property business to Marina Topco, a company controlled by Blackstone Real Estate Partners Europe IV. The assets are valued at £447.7m before exit costs, which includes £33m of cash (15p a share) returned to shareholders earlier this month. More than 50 per cent of shareholders must approve the deal, but the company has already received irrevocable undertakings representing 46 per cent of the company's shares.
Max Property was established to take advantage of what was at the time a depressed real estate sector and its portfolio of industrial estates has been steadily let or sold. The valuation reflects a 22 per cent increase in book value over that reported at the end of March and, after deducting the £33m already paid out, the remaining £414.2m - less £500,000 retained by the company - will be returned to shareholders and is expected to be around 184.2p a share in total. That represents an annual compound growth rate of 13.2 per cent since Max was established in 2009. Subject to shareholder approval, the balance of the distribution is expected to take place on 21 August. At the conclusion of the liquidation process, a further 0.4p per share distribution will be made.
