A listed support services giant has taken a majority stake in a property developer behind a series of high-profile schemes in the North West, including the 20-acre First Street project in Manchester.
Carillion has bought out the four founding shareholders of Ask Real Estate, which was formed in 2000 and is led by managing director John Hughes (pictured).
The acquired company sold its 20-acre First Street development last May to PATRIZIA UK, a subsidiary of PATRIZIA Immobilien AG, the German listed European real estate investment company.
Ask Real Estate is currently working with Carillion and Tristan Capital Partners on a two phase development at Embankment in Salford.
The first phase comprises 101 Embankment, a 10-storey, 165,000 sq ft development of grade A office space, retail and leisure units and 442-space multi-storey car park pre-let to Q-Park due for completion in July 2016.
Hughes said: “The Carillion investment into Ask Real Estate is a game changer for the business, presenting us with an exciting opportunity to marry our reputation for delivering high quality developments and spaces in urban centres with the expertise and financial resource of Carillion.”
Following the deal, Hughes and finance director Jonathan Cross retain their executive roles and will be joined on the board of Ask by Simon Eastwood, managing director of Carillion’s developments business and Peter Forsyth, Carillion’s director of strategy and investment.
Richard Howson, chief executive of Carillion, said: “Carillion has established an excellent working relationship with Ask on the Embankment project in Manchester and this investment will enable both businesses to build on that success at a time of exciting opportunities in the North of England.
“Carillion already has a strong presence in the region delivering prestigious projects in a number of places including Manchester, Liverpool and Leeds and this deal underlines our long-term commitment to the North.”
In addition to its North West schemes, Ask Real Estate is behind an 800,000 sq ft mixed-use scheme on the banks of the River Tyne at Gateshead Quays.