Two directors of Quartermile Developments have completed a management buyout of the Edinburgh-based developers and planned to take the new company nationwide.
Chief executive officer Paul Curran and finance director Mike Milligan have purchased the entire share capital in Quartermile Edinburgh from Moorfield and Bauposts Group’s value-add fund MREFII.
The acquisition of QMEL comprises the Quartermile Developments, Quartermile Estates and Quartermile Ventures operating companies, and the new holding company Qmile Group will aim to build on its successful delivery of Edinburgh city centre’s landmark £750m Quartermile mixed-use development.
The company is currently building 145 homes at its 52-acre, £100m Craighouse development in the Scottish capital and 17 employees will remain with the business after the MBO. New chief executive Curran said the Qmile Group will initially have a Scottish focus but then look to expand across the key cities in the UK.
In the four-year ownership of Moorfield Group and Baupost, Quartermile delivered two Grade A office buildings comprising 128,600 sq ft and 72,991 sq ft let to high-profile tenants including financial services business State Street Bank & Trust Company and audio chip designer Cirrus Logic.
Curran added: “With the final phases of Quartermile nearing completion it was natural for us to consider future opportunities. Our Craighouse development was already underway and selling well off-plan due to the strength of the Quartermile brand and our national and international reputation for design and build excellence.
“Our relationship with both Moorfield and Baupost has been excellent from very beginning; against this backdrop we were able to complete an MBO quickly and to everyone’s satisfaction. We now look forward to further implementing our strategic growth plans for Qmile Group. We are already exploring a number of mixed-use, residential and commercial opportunities and assessing various funding opportunities.”
Quartermile currently comprises 1,050 apartments; 370,000 sq ft of Grade A office accommodation; 65,000 sq ft of retail and leisure space; and seven acres of open landscaping.
Brodies advised Qmile Group, whilst MREFIII and Baupost were represented by Herbert Smith Freehills and Ropes & Gray.