SJ Berwin - General - Marylebone Warwick Balfour In Major Restructuring

Date: 04 Sep 2002

David Ryland, SJ Berwin’s leading property finance expert, advised Marylebone Warwick Balfour (MWB), the UK property group, in connection with its radical plans for winding down the company by 2005. SJ Berwin acted for ServeCo, a new company formed to deal with the management of MWB’s property assets. It will be owned by MWB’s current executive management and will receive £5.4 million in management fees in 2002, this amount reducing in line with the disposal plan.

MWB's assets, which include serviced office company Business Exchange, retail group Liberty and hotel chain Malmaison, will be sold off over four years with the proceeds returned to shareholders through share buybacks and a special dividend.
David Ryland who led the team at SJ Berwin says that MWB have found an innovative structure to resolve the problems of an illiquid company with a small market capitalisation.

MWB also raised £20m by the placing of 25m new shares at 80p each with Active Value, the activist shareholder fund set up in 1993 by South Africans Brian Myerson and Julian Treger.

David Ryland led the team at SJ Berwin assisted by senior assistants Stephen Marshall (Property) and Paddy James (Corporate). Dechert (Janice Wall) acted for Marylebone Warwick Balfour.

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