2002 COVERAGE


    BACK TO RECENT PRESS COVERAGE

    • PATRON CAPITAL L.P.I AGREES TO ACQUIRE SIMON STORAGE (December 19, 2002)

    • Europroperty Article: Patron Capital (November 2002)
    • Simon Talks May Lead to Break Up, Financial Times (November 23, 2002)
    • Simon Group Trading Statement (November 22, 2002)
    • Hotel Forum Conference, Munich, October 30th, 2002 Keith M Breslauer Speaker
    • Privately Speaking: Keith Breslauer and Making Inroads into Private Equity
      (Private Equity International (October 2002) - PDF, 2.9mb)
    • Marbella Meeting Point Symposium International
    • Meag erwirbt Büroimmobilie in Barcelona (August 13, 2002)
      (Meag Acquires Office Building in Barcelona)
    • Seawheel Drags on Simon Shares (July 12, 2002)
    • Patron Makes the Running in Simon Sale (June 10, 2002)
    • Patron Capital Partners Is Not Afraid of Smaller Deals, Immobilien Zeitung (June 6, 2002)
      (PDF, 860k)
    • Patron Capital Awarded 2001 Deal of the Year for BVCA Private Equity Awards Dinner (April 25, 2002)
    • Patron Capital Awarded 2001 Deal of the Year for the Hotel Arts Transaction at the
      International Hotel Investment Forum (March 21, 2002)
    • Santa Maria Milan Sale Press Release (January 28, 2002)


      • Patron Capital Press Release
      December 19, 2002
      View PDF (168k)

      Patron Capital Limited ("PCL") in its capacity as investment adviser to Patron Capital L.P. I ("Patron") is pleased to announce that Patron has reached agreement to acquire 100 per cent control of the largest UK independent multi-site bulk liquid and gas storage operator via a two step transaction:

      • The acquisition for £63.85 million of the share capital of Simon Storage Limited ("Simon Storage") less bank and intercompany indebtedness, from Simon Group Holdings Limited; and conditional on the completion of that transaction

      • The acquisition for approximately £24.15 million of Vopak Holding Logistics UK Limited's ("Vopak") 49.99 per cent interest in Chemicals Oil and Storage Management Limited ("COSM"), a joint venture company currently owned by Simon Storage and Vopak.

      The total consideration for such shares of COSM and Simon Storage payable by Patron is approximately £88 million less bank and intercompany indebtedness. The total funding requirement (i.e. £88 million, plus a further £9 million in additional investment associated with the transaction and the company) will be provided by Patron and a financing facility from Bear, Stearns International Limited. Patron's financial, structuring, legal and accounting advisers were Commerzbank Securities, Bear, Stearns International Limited, TaylorWessing and Ernst & Young respectively.

      The acquisition of Simon Storage is conditional, amongst other things, upon the approval by Simon Group plc's shareholders at an Extraordinary General Meeting anticipated to be held in January 2003. The cash consideration will be adjusted to the extent that there has been a movement in the consolidated net assets of Simon Storage and its subsidiaries during the period from 31 August 2002 to completion. Completion is expected to take place within three days of Simon Group plc's Extraordinary General Meeting.

      Simon Storage is the leading UK independent supplier and multi-site operator of bulk liquid and gas storage and handling facilities in the UK and Ireland, providing a comprehensive service to the international chemical, oil and edible industries. The Company operates seven deep-water terminals with a total storage capacity of approximately 1,000,000 cubic metres, including over 500 tanks. The terminals are involved in the receipt, export and transfer of a wide range of liquid and gaseous products via sea, road, rail and pipeline. Through its wider Bulk Liquid and Gas Network activities, Simon Storage also provides specialist facilities management services to third parties in the aviation, energy and marine industries under the name of Simon Management. All services are supported by extensive in-house expertise in operations, project engineering, automation systems and training. Both terminal and facilities management operations are complemented by a wholly-owned road tanker/tank container company, Lewis Tankers, operating in the UK and continental Europe for a range of international oil and chemical organisations.

      Simon Storage wholly owns two terminals located within the Teesside chemical/oil complexes, at Seal Sands and at Riverside (Billingham). Five further terminals, including two on the Humber Estuary, are operated by COSM. The Immingham terminals constitute the largest and most comprehensive independent facilities in the UK, and are closely integrated both with international oil and chemicals flows and manufacturing plants in the region.

      In the year ended 31 December 2001, Simon Storage and its subsidiaries generated consolidated turnover and consolidated profits after taxation and minority interests of £46.0 million and £4.5 million, respectively, and as at 31 December 2001 had net assets, after deducting minority interests, of £42.0 million.

      In the six months ended 30 June 2002, Simon Storage and its subsidiaries generated consolidated turnover and consolidated profits after taxation and minority interests of £23.2 million and £1.9 million, respectively, and as at 30 June 2002 had net assets, after deducting minority interests, of £43.9 million.

      Commenting on the transaction Keith Breslauer, Managing Director of PCL said

      "We are delighted Patron has reached agreement with both Simon Group plc and Vopak in the acquisition of Simon Storage Ltd. It is a fine and well-established business with a strong management team, high quality facilities and services, and an excellent reputation with its wide customer base. All at Patron are looking forward to working with Managing Director, Roger Hartless, and all of his colleagues and believe that there is strong future growth potential for the Company."

       

      Enquiries

      Patron Capital Limited
      Keith Breslauer, Tad Shay 020 7629 9417
      Commerzbank Securities
      Nicholas Legh, Shane Law 020 7469 3140

      This announcement is made by PCL, which is regulated in the United Kingdom by the Financial Services Authority.

      Commerzbank Securities which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for Patron and no-one else in connection with the matters set out in this announcement and will not be responsible to anyone other than Patron for providing the protections afforded to clients of Commerzbank Securities or for giving advice in relation to the matter set out in this announcement or any transaction referred to herein.

      Notes to Editors: PATRON CAPITAL LIMITED / PATRON CAPITAL L.P. I

      • Patron Capital Limited was established in 1999. Its founder Keith Breslauer was formerly at Lehman Brothers and head of that firm's Principal Finance business. PCL's partners include Tad Shay, a real estate veteran with over 20 years of experience, and Kendall Langford as General Counsel with over 10 years in the legal profession.

      • PCL acts as adviser to its fund, Patron Capital L.P. I ("Patron"). Patron's investors include leading US and European institutions, pension and endowment funds and high net worth family offices.

      • The primary focus of Patron is to invest in property, property-related companies or companies with significant property assets throughout Western Europe. The strategy of Patron is to support existing management teams and provide extra capital as required to help grow and develop the business. To date, Patron has invested in properties and companies with assets over €2 billion.

      • Since its inception, Patron has made various investments in the UK and Europe and PCL has won:

        • The British Venture Capital Association for the Private Equity Deal of the Year in 2002 for Patron's joint acquisition of igroup with Royal Bank Private Equity, and

        • The Hotel Deal of the Year in 2002 for the joint acquisition with Deutsche Bank of the Hotel Arts Complex in Barcelona, Spain.

      • Keith Breslauer and PCL have frequently been in the news with their various transactions, with the latest interview provided to Private Equity International, October 9th Edition.

      For more information, please see our web site at www.patroncapital.com.
 
(back to top)
 


December 19, 2002
Reuters

LONDON, Dec 19 (Reuters) - British ports and logistics company Simon Group Plc said on Thursday it had sold its Simon Storage Ltd business for 63.9 million pounds ($102.2 million) cash to private equity group Patron Capital. "Net cash proceeds will be used to repay group indebtedness and invest in the development of the continuing group which will focus on its ports and logistics activities," Simon said in a statement.

Simon put itself up for sale on January 31 but received no offers. "In these circumstances, the board has elected to pursue the offer made for the... storage division as this presented the most attractive option to achieve value."
 


December 19, 2002
Bloomberg

By James Regan
London, Dec. 19 (Bloomberg) -- Simon Group Plc agreed to sell its storage business to Patron Capital Ltd. for 63.9 million pounds ($102 million) in cash to repay debt and invest in ports and logistics. Simon Group stock rose as much as 27 percent.

As part of the agreement, Patron Capital will also pay Royal Vopak NV 24.2 million pounds for its 49.99 percent stake in a joint venture with Simon Storage Ltd., the London-based buyout firm said.

The sale of Simon Storage ``will reposition Simon, allowing it to focus on its continuing ports and logistics divisions whilst eliminating group debt,'' Simon Group Chairman Michael Davies said in a Regulatory News Service statement.

Simon Group has been looking for a buyer for the whole company as well as for individual units since January, following a review of the company's strategy. It decided to sell Simon Storage after no offer was made to buy Simon Group.

Shares of Simon Group last traded as much as 7.5 pence higher at 35.5p as of 8:18 a.m. in London, their highest price since Dec. 11. The stock is down 36 percent this year.

Third Party
Simon Group said it's continuing to hold discussions with an unidentified third party which has indicated it's interested in buying the company without the storage division.

The performance of the company's Seawheel logistics unit ``continues to be poor with market conditions remaining weak.'' Simon Group is reorganizing the business to lower costs. This will lead to one-time charges in 2002, and the business may need ``substantial cash support'' during the next 12 months, Simon Group said.

Patron is buying Simon Storage and Royal Vopak's Chemical & Oil Storage Management Ltd. joint venture for a total of 97 million pounds, Patron Managing Director Keith Breslauer said in an interview. The unit stores oil, gas and chemicals in the U.K. for Conoco Inc., BP Plc and other customers.

``This asset will grow faster as an independent company than as part of a larger group,'' said Breslauer, a former banker at Lehman Brothers Holdings Inc.

Patron was advised by Commerzbank AG. Bear Stearns Cos. is arranging a loan to help finance the acquisition and may arrange a bond sale backed by Chemical & Oil Storage Management's revenue in the next six months, Breslauer said.

Simon Group's advisers are Gleacher & Co. Ltd. and Hoare Govett Ltd.
 
(back to top)
 


December 19, 2002
Financial Times
By Andrea Felsted

Simon Group is close to selling its tank storage business to Patron Capital, the private equity firm that has been stalking the storage, ports and logistic company for three years.

Patron is thought to be paying a headline price of about £60m, more than Simon's market capitalisation of £44m. Selling the storage unit, which had net assets of £49m and made operating profit of £4.5m in the six months to June 30, would leave Simon with the Humber Sea Terminal and Seawheel, its lossmaking logistics unit.

Associated British Ports has made no secret of its interest in the Humber Sea Terminal at the right price.

 
(back to top)
 

December 19, 2002
telegraph.co.uk
By Alistair Osborne, Associate City Editor

Simon Group, the ports and logistics company, will today announce a deal to sell its storage operations to private equity group Patron Capital for about £65m.

The deal will see Patron buy Simon Storage, Britain's leading independent operator of bulk liquid and gas terminals, which span seven sites including major facilities in Immingham and on the Tyne.

As part of the deal, Patron will also pay about £25m to take full control of Simon's 50-50 joint venture with Royal Vopak, a Dutch storage group. Including buying out Vopak's stake, the acquisition will cost Patron about £90m.

Simon will be left with two main businesses - its ports operations, notably the Humber Sea Terminal, and Seawheel, its problematic shipping logistics operation. It is expected to use the proceeds to pay down debt and try to improve the performance of Seawheel.

Buying the storage business will be the culmination of two years' patient stalking of Simon by Patron, which is run by Keith Breslauer.

Patron approached a member of the Simon board just before Christmas 2000 with an indicative proposal of 65p-a-share for the entire group.

After that was rebuffed, Patron followed up with another friendly approach at 75p, which was again rejected by Simon's then adviser Close Brothers. Mr Breslauer had no wish to go hostile.

It was not until March 2001 that the Simon board revealed it had received "an indicative and highly conditional proposal".

New advisers, Gleacher & Co, were subsequently appointed to carry out a review of the business and in January, Simon began a formal sale process.

Under shareholder pressure to unlock value, Maurice Dixson resigned as chief executive in March to be replaced by finance director Tim Redburn.

Throughout this time, Patron continued to show interest in the company and in September Simon revealed it was in talks with a number of interested parties, including one doing due diligence with a view to making an offer for the whole group.

Last month, Simon disclosed that talks with that party to acquire the group had broken down but its suitor remained interested in acquiring the storage division.

Last night, Mr Breslauer declined to comment. Simon, whose shares fell 4.5 to 28p yesterday, also refused to make any statement.
 
(back to top)
 


The fund is prepared to enter complex deals with partners when they offer the chance to acquire choice assets such as Barcelona's Arts Hotel, part of a recent portfolio buy
November 2002

When the Patron Capital Partners fund formed a joint venture with Deutsche Bank and private investors late last year to buy the Arts Hotel Complex in Barcelona, the deal was fraught with with the kind of complications Patron believes gives it an edge in the European investment market.

To get to the asset at the heart of the deal - the Arts Hotel - the joint venture company, Hovisa, had to buy two companies owning other assets around the site, including a 12,375m2 office building, a plot of land and a retail and casino complex.

However, the €285m price tag was far less that the portfolio's break-up value. "That was the opportunity for us," says Patron Capital managing director Keith Breslauer. "The hotel alone would have attracted around 10 bidders, but Patron Capital Partners was prepared to take the risk of the whole portfolio." The office building has since been sold to German insurer Meag for €50m.

Patron Capital Partners is a medium-sized fund, which invests in real estate assets, financial institutions, mortgage portfolios and related businesses. As the Arts Hotel deal shows, it is prepared to buy whole portfolios to gain access to key assets. For example, in the UK, it is reportedly in talks to buy the £150m port and logistics company Simon Group.

With its focus on medium-sized deals requiring equity investments of between $10m to $25m, Breslauer says it "plays a market that few people are looking at".

The fund has $120m of equity, with institutions as the main investors, along with private investors and equity from Patron Capital's management. Breslauer says its investors are looking for a return over a shorter than usual investment period. The fund has returned around 65% of the capital drawn back to investors with a return on equity ranging from 1.7 to 2.2.

The equity is also bolstered by working alongside partners such as General Motors Acceptance Corporation and Royal Bank of Scotland. The private equity side of the Scottish bank was an investor with the fund in 1999, when it backed the management buyout of igroup, a mortgage company, which has since grown from £450m to in excess of £1.6bn in assets.

Breslauer says Patron Capital Partners stands apart from other funds due to the depth of its European experience, its strategy of shunning development, and having an efficient decision-making process.

Breslauer had been working in Europe since the early 1990s before he set up Patron with partners Tad Shay and Kendall Langford. His career has followed several cyclical investment trends. For example, between 1993 and 1996, his focus was distressed UK mortgage and real estate business, shifting to distressed property markets in France between 1995 and 1999.

Patron now focuses on three main markets: Switzerland and Italy, which it believes have distressed markets, and Germany. In Switzerland, the fund has targeted the hotel sector, buying assets out of bankruptcy. In Italy, it bought the Arab Banking Corporation residential lending bank for a price reflecting the value of its main asset, a 3,186m2 Milan building. The deal also included a non-performing loans portfolio.

In Germany, Patron expects a credit crunch for medium-sized corporations, which will give it opportunities to buy property assets directly or by acquiring entire companies. It also plans to acquire more UK assets and expects that the right conditions for investment will be in place by next year.

 
(back to top)
 


November 23, 2002
Financial Times
By John Kipphoff

Simon Group, the ports and logistics company, yesterday raised the prospect of being broken up when it said it was in parallel talks to sell its storage division to one party and to sell the whole group - with or without storage - to another.

The first would-be buyer, understood to be private equity firm Patron Capital, had been conducting due diligence with a view to acquiring Simon in its entirety but was said to have been "unable to make an appropriate offer for the group

The company said its board was evaluating an alternative proposal to buy only the storage division. Patron did not comment.

Simon also said it had entered "discussions with another party contemplating making an offer for the group with or without storage

Associated British Ports, which has said in the past it was interested in Simon's Humber Sea Terminal, the only deepwater roll-on, roll-off terminal on the river, yesterday denied being in talks with Simon.

Simon's shares rose 1 1/2p to 39 1/2p, valuing the group at £63m but still remained far below Patron Capital's 75p-a-share offer last year, which Simon rejected.

The storage division last year accounted for about one-third of continuing group sales of £148m and enjoys steady earnings.

Simon also updated the market on trading, saying difficulties were continuing at Seawheel, the logistics arm behind three profit warnings this year.

Following a £15.6m goodwill write-off during the first half, Seawheel was expected to incur a further one-off cost this year.

The group revealed it would have to resume pension fund cash contributions at the rate of £1.5m a year.

However, it expected substantial cost savings from next year's move of its headquarters from Eaton Gate, central London - and from staff reductions there - to Redhill, Surrey.

London Edition 3.

Copyright Financial Times Limited 2002. All Rights Reserved.
 
(back to top)
 


November 22, 2002

Simon Group plc -- Sale Process and Trading Update

Sale Process
On 25th September 2002, the Board of Simon Group plc ("the Group" or "the Company") reported that it was in discussions with a number of interested parties and that one party was continuing to conduct confirmatory due diligence with a view to making an offer for the Group.

The party, which was conducting confirmatory due diligence, has proved unable to make an appropriate offer for the Group and, instead, is seeking to acquire the Storage Division ("Storage") from the Group, which the Board of the Group (the "Board") is currently evaluating. The Board, in parallel, has entered into discussions with another party which has indicated it is contemplating making an offer for the Group with or without Storage. There can be, at this stage, no certainty of either potential transaction happening.

Any proposed sale of Storage would be subject to shareholder approval.

Trading Update
The Storage Division continues to trade well despite some weakness in the chemicals market, which is being offset by improved demand for petroleum storage and distribution.

In the Ports Division with the start of Seawheel's Ro/Ro services between Killingholme and Rotterdam, the Humber Sea Terminal "HST" has seen a substantial increase in volumes in recent weeks. This should result in a stronger performance in the second half of 2002 and improve the prospects for 2003. HST now has high levels of utilization on both of the Phase I berths and we continue to seek the final detailed permissions that will be necessary to secure Phase II development.

Further to earlier trading statements, Seawheel's performance continues to be poor with market conditions remaining weak. The restructuring of the division is underway with an intent to lower substantially both operating and overhead costs. This will give rise to a further one-off cost in 2002.

The Group intends to reduce its head office staff and to relocate in January 2003 out of London to existing Group premises in Redhill. This should give rise to significant cost savings.

Following a formal revaluation of the Group's pension scheme, the previously reported pension surplus has been substantially reduced by the fall in stock markets in the past year. As a result, the Group resumed making cash contributions with effect from November 2002 at the request of the Trustees, amounting to approximately £1.5 million in a full year.

Enquiries
Simon Group plc 020 7730 0777
Michael Davies, Chairman
Tim Redburn

Gleacher & Co Ltd 020 7484 1150
Alton Irby III
Robert Engel
 
(back to top)
 


October 30, 2002
(Word Download, 28k)

I have been asked to speak fast, so I have prepared some comments. Good afternoon, my name is Keith Breslauer and I represent Patron Capital, a private equity fund. As background, Patron Capital Partners is a medium-sized investment fund, which manages approximately €350m of equity of which approximately €170m is on a fully discretionary basis. With leverage we can acquire over €1.5bn in assets. We are closely affiliated with many leading European financial institutions including the Royal Bank of Scotland, Commerzbank Securities and General Motors Acceptance Corporation. Unlike German funds, our fund can invest across Europe, in different products [ranging from hotels to distressed loans] and with complete discretion by our Management team. We have operations in five countries, we employ directly or indirectly over 600 people and we mange several business.

My credentials, which apparently qualify me to speak today - I have been in the investing business for 15 years with the past 9+ years in Europe and I have been an active hotel investor. I am the managing partner of Patron Capital and its lead originator, and as we have not ‘sponsor', our decision process essentially rests with me.

In 1997-1998 I embarked on a plan to build a 3 or 4 star hotel chain in Paris. If you can remember this was during the time in which tourists were afraid to go to Paris due to the Algerian bombing campaign and also the majority of existing hotel products were owned by families in discrete units. Further, most interested parties wanted single large hotels given their concern with responding to economies of scale. Our idea was to group small inefficient hotels to create a larger group. We executed this idea by acquiring 9 hotels in 3 different transactions in Paris and 1 hotel in Nice. After we acquired these hotels, we effectively consolidated them and working with our partner Astotel we reduced expenses, improved revenues and ultimately sold the Paris group to Sol Melia. These hotels then went on to become the French boutique hotels for their group. The Paris hotels included the Alexander, the Madeline Palais, the Adagio, the Colbert, the Royal Alma, the Blanche Fontaine, the Sax, and the Francois. The hotel in Nice was the Beau Rivage which was acquired with its Mediterranean beachfront and a restaurant. In total, with the Nice transaction we had over 650 rooms.

2 years later we embarked on a similar strategy in Switzerland and working with Lindner Hotels we entered the Swiss market and acquired the Hotel de France, the Maison Blanche, a 12,000 sqm health spa in Leukbard as well as the Beau Rivage Hotel in Interlarken. Lastly, in December 2001, right after September 11, in partnership with Deutsche Bank we acquired approximately 110,000 sqm of property in Barcelona, which included the Hotel Arts and related facilities. These investments included properties, businesses and in certain cases pure leaseholds.

Given this activity, many people think of us a hotel fund. In truth, we view ourselves as investors in business with good, highly skilled partners were our investment is supported by assets. In addition, given our high investment return target, we typically seek opportunities that are either distressed or can be value-enhanced by our partners. As we all know the hotel industry provides many opportunities if you have a good solid partner.

The topic of this discussion panel of ‘fonds funding for everyone' is quite interesting as in our experience working with partners is more important than the merit of each deal - as that partnership, if working, can address any problems and grow together. In our experience this task can be daunting as it usually requires the partner to adjust their decision process, their reporting procedures from a long term, perhaps generational view to a medium term investment horizon. Further, as investors we need an exit which means the partnership has to contemplate a sale or some exit within 5 years.

Much time is needed in developing these partnerships to ensure both partners have a good understanding of each other's objective. For example, the definition of IRR or Internal Rate of Return – What is it? How is it calculated? And how does it affect the partners? Another example is approval and implementation of a business plan – What is it? How is it prepared? What supporting information exists and how will the decision be taken? Lastly, exit. How will we get out? What will happen to our partner? How will the profit be shared? All of these are crucial subjects that need to be addressed early when addressing a transaction.

So where are we interested now? And what kinds of product? Well, we avoid development deals and pure property investment. These deals seem pretty dry and seen to be based on whether the hotel operation will pay rent or not. Further, we avoid deals where we have limited control. A good example is the leases that allow a hotel to loose money for 2 years before we can act.

We focus on turnaround situations in which both the assets and business have ‘upside'. We invest both in property and business. Markets that are interesting to us are Germany, Switzerland and in certain circumstances Eastern Europe.

In Germany and in Switzerland we see many potential opportunities in a distressed turnaround situation. Given the state of these 2 economies it appears that even more products may become available. The challenges in these markets are difficult, in Switzerland there is a complete inertia to make decisions and one has to address the limited resource pool and the expensive cost of staff. As an example, with the Lindner Group we have reviewed over 140 situations and are constantly searching for highly qualified staff.

In Germany there remains a significant gap between sellers and buyer's required price. This has been exasperated by this year's capital market losses, which have prevented sellers from taking further losses this year. Many opportunities are complicated by heavily indebted companies as well as by extremely high rents. These rents were originally designed to sell funds and raise as much proceeds as possible from the German retail market. These opportunities are then typically further complicated by personal guarantees of owners, a characteristic typical in most German transactions. I find it interesting to hear the German Fond market is so healthy especially as most banks have effectively closed their doors.

Regardless and perhaps because of this crunch we remain very interested and we present partners with money, efficient decision making, speed and additional help in accessing financial markets to the extent necessary. We have a great deal of practical investment experience and therefore act as an excellent partner to an operator.

I hope you have found my short comments helpful and I look forward to answering questions.

 
 
(back to top)
 


February 13-14, 2003
Diario Inmobiliario

Este año, el Symposium Internacional será más largo que en su primera edición, durará un día y medio. Comenzará el miércoles, 13 de febrero a las 9:30 horas y terminará el jueves, 14 de febrero a las 14:00 horas. El Symposium presentará a más de 40 ponentes internacionales de primera categoría, distribuidos en 13 sesiones.

Entre los temas a tratar destacan el análisis de la coyuntura económica mundial tras el 11 de septiembre y sus repercusiones en el sector turístico internacional, en general, y español en particular, que puede salir muy beneficiado de la actual situación; las últimas tendencias en conceptualización de resorts, hoteles y urbanizaciones; y la problemática Urbanismo-Turismo, tanto en un plano abstracto, conceptual, filosófico incluso, como en un plano concreto: la normativa en las ciudades de la Costa del Sol.

Según una de las personas que más sabe sobre la industria del ocio y el turismo, el turismo en España no se verá afectado por la crisis internacional. Ésta es la opinión de Muriel Muirden, directora de Economics Research Association, key-note speaker de Marbella Meeting Point 2002. Sus razones están llenas de lógica: los ciudadanos comunitarios preferirán pasar sus vacaciones cerca de casa, en lugares como España, Italia y Portugal. Los vuelos charter europeos no parecen objetivos claros de ataques terroristas. Los turistas que vienen a España son, principalmente, alemanes, británicos, y del norte de Europa, más que norteamericanos.

Este año MMP reúne a reconocidos expertos del sector. Antonio Cortina, subdirector de Servicios de Estudios de Santander Central Hispano, hablará sobre las previsiones para la economía mundial en los próximos 18-24 meses y sus consecuencias para el sector inmobiliario y turístico en España.

Entre los ponentes participantes de MMP 2002 se encuentran también Wendell Ward, Jr, vicepresidente Internacional de Marriott Hotels, con sede en Washington; Charles Cunningham, director Financiero y de Desarrollo de CCA Europe, que explicará el auge de un nuevo concepto hotelero: es de "boutique hotels"; y Simon Allison, un experto en el tema hotelero y director Financiero de Hospitality Europe Services.

Patron Capital Limited es la compañía que ha realizado la inversión inmobiliaria en España en este último año, que es también la inversión hotelera más importante del trimestre en Europa, la compra del hotel Arts de Barcelona. Su director general, Tad Shay, analizará el mercado inmobiliario de resorts y ocio y por qué algunos mercados europeos se beneficiarán de estos tiempos de incertidumbre..

 
(back to top)
 


(Meag Acquires Office Building in Barcelona)
August 13, 2002
Immobilien Zeitung

Die Meag Munich Ergo Real Estate Investment GmbH hat für rund 50 Mio. EUR von einem von der Deutsche Bank Privat Equity Group geführten Konsortium das 16.000 qm Nutzfläche große "Blue Building" in Barcelona erworben. Das Objekt, Ende 1993 fertig gestellt und neben dem "Hotel Arts" im Olympischen Hafen von Barcelona gelegen, besteht überwiegend aus Büroräumen; daneben gibt es Festsäle und Konferenzcenter. Die Immobilie biete, so die Meag, auf Grund weit unter Marktniveau liegender Mieten ein hohes Wertsteigerungspotential. Zu dem Mietern gehören bekannte spanische Unternehmen. Bei dem Ankauf wurde die Meag von Cushman & Wakefield Healey & Baker unterstützt, während die Verkäufer von Jones Lang LaSalle beraten wurden.

 
(back to top)
 


July 12, 2002
Financial Times
By David Blackwell

Shares in Simon fell 17 per cent yesterday after the port and logistics group warned for the second time this year that Seawheel, its European logistics operation, was performing poorly.

The company put itself up for sale in January.

In April, it said Seawheel would have "a material negative impact" on the first half.

Yesterday, it said Seawheel's poor performance had continued throughout the first half, and would hit full year results.

The shares fell 17 per cent to close at a 12-month low of 41p.

Last year, the company rejected an offer of 75p a share from Patron Capital, the venture capitalist.

Simon confirmed yesterday that discussions were continuing with several interested parties.

One potential buyer, believed to be Patron, is being allowed to conduct due diligence.

Andrew Murphy at WestLB Panmure said: "It appears there is only one buyer left in town, so they can name their own price."

 
(back to top)
 


June 10, 2002
Financial Times
By Andrea Felsted

Patron Capital, the private equity group, has emerged as a front-runner to acquire Simon Group, the port and logistics company currently valued at about £100m.

Patron, which is run by Keith Breslauer, the former head of Lehman Brothers' principal finance unit, has stalked Simon for more than 18 months.

It is thought any offer would be at a slight premium to the current share price.

Shares in Simon, which put itself up for sale earlier this year, closed at 60p on Friday, valuing the company at £95m.

Patron has not entered exclusive talks with Simon, and other buyers are believed still to be interested in the company.

Bidders have been attracted to Simon by the Humber Sea Terminal, the roll-on, roll-off terminal on the Humber estuary that opened in October 2000.

Associated British Ports, which a year ago sought confidential guidance from the Office of Fair Trading on whether it could acquire Simon, was an earlier bidder with 3i, but has since pulled out.

ABP is believed to have found the valuation attached to the port business unrealistically high. It would, however, still be interested in acquiring the Humber Sea Terminal.

Patron made an informal approach to Simon in December 2000. The initial price discussed was 65p a share, but this was rejected. It then returned in early 2001, making another friendly approach to both the Simon board and its adviser, then Close Brothers, at 75p a share, valuing the company at almost £120m.

Simon rejected this offer as too low. It also took issue with conditions attached to a potential bid, including allowing Patron access to books for due diligence. It also objected to Patron's demand that Simon pay an inducement fee.

Simon was forced to put itself up for sale in January after pressure from a group of shareholder activists, led by JO Hambro, which has built up a 12 per cent stake.

In spite of the interest, analysts and port industry experts are still sceptical that a bid for the whole of the group will materialise.

As well as the Humber Sea Terminal, the group includes Seawheel, a logistics business, and a tank storage arm.

Simon is being advised by Gleacher & Co.
 
(back to top)
 


April 25, 2002
Patron Capital Press Release
Download Press Release(Word, 24k)

Patron Capital along with its fellow investors, Royal Bank Private Equity and certain private investors have been awarded Deal of the Year by British Venture Capital Association (BVCA) Annual Dinner for deals in the United Kingdom. The igroup deal was selected from many competitors "due to the complexity of the transaction, the powerful performance of the company and the spectacular exit".

This award continues to highlight Patron's capabilities and provide Patron with increased market exposure as the BVCA is the industry organisation for private equity in the United Kingdom.

Patron Capital, L.P. I is a private equity Fund focused on opportunistic investments which are property related or supported in Europe. The Fund has investments throughout Western Europe and represents leading US and European Institutions and Family Offices.

Patron Capital Limited was formed by Keith Breslauer and acts as investment adviser to the Fund.

For additional information, contact:
Amanda Plummer
Patron Capital Limited
41 Dover Street
London W1S 4NS
(020) 7629 9417 (o)
(020) 7629 9418 (f)

 
(back to top)
 


March 21, 2002
Patron Capital Press Release
Download Press Release (Word, 24k)

Patron Capital along with its fellow investors, Deutsche Bank and certain private investors have been awarded Deal of the Year by the International Hotel Investment Forum at the annual conference for the hotel industry. The Hotel Arts deal was selected from many competitors "due to the complexity of the transaction combined with the high quality and value....for a bargain basement price".

This award continues to highlight Patron's capabilities and provide Patron with increased market exposure as the conference is now the leading European hotel and leisure conference with over 900 attendees this year.

Patron Capital, L.P. I is a private equity Fund focused on opportunistic real estate investments in Europe. The Fund has investments throughout Western Europe and represents leading US and European Institutions and Family Offices.

Patron Capital Limited was formed by Keith Breslauer and acts as investment advisor to the Fund.

For additional information, contact:
Amanda Plummer
Patron Capital Limited
41 Dover Street
London W1S 4NS
(020) 7629 9417 (o)
(020) 7629 9418 (f)

 


January 28, 2002
Patron Capital Press Release
Download Press Release (PDF, 106k)

Patron Capital Limited, the investment advisor to Patron Capital Partners, is pleased to announce:

  • The sale of Santa Maria Fulcorina 6, an important office building located in Piazza Affari, in the heart of Milan, Italy.

  • The building was one of the assets held by a small bank acquired by Patron Capital Partners in August 2001.

  • The property was sold for Euro16,250,000 (approx. ITL 31.5 billion) or approx. Euro 5,950 (approx. ITL 11,500,000) per square metre of office area, representing one of the highest per square metre sales achieved in Milan in the past 10 years. The purchaser was an Italian investor who will now refurbish the building throughout having secured a pre-letting to a major international banking group.

  • Although the bank when first acquired had a difficult and complex balance sheet, Patron was able to restructure the company to achieve a clean sale of the office building.

  • Given the turnaround time of less than 6 months, investors in Patron Capital Partners achieved an after-tax return of over 500% and a return of approximately 2x their initial equity investment.

  • The Fund has retained its ownership in the bank and through a series of joint ventures with local partners plans to expand the bank's business in both the performing and non-performing loan sectors.

Patron Capital, L.P.I, is a $250 million Fund focused on opportunistic real estate investments in Europe. The Fund has investments throughout Western Europe and represents leading US and European Institutions and Family Offices.

Patron Capital Limited was formed by Keith Breslauer and acts as investment advisor to the Fund.

For additional information, contact:
Amanda Plummer
Patron Capital Limited
41 Dover Street
London W1S 4NS
(020) 7629 9417 (o)
(020) 7629 9418 (f)

  (back to top)