Kenmore funds management buyout of office company

Kenmore Private Equity has made its second investment since its formation in November and its first foray into the office space sector through the management buyout of London-based Avanta.

Kenmore Private Equity, the private equity arm of the Kenmore Property Group, a Scottish property manager, has funded the management buyout of Avanta, a serviced office company in London, a statement said.  The company’s previous owners were founder David Alberto and private equity firm Hamilton Bradshaw.  No financial details were disclosed.

Kenmore Private Equity has provided additional equity that, with bank debt, will fund a £100 million expansion programme.  Avanta, which was founded in 2004, hopes to manage one million square feet of assets by 2008 through a combination of freeholds and leaseholds.

Biggart Baillie gave legal advice to Kenmore Private Equity while Rooks Rider advised Hamilton Bradshaw and the management.

It is Kenmore Private Equity’s first investment into the serviced office sector and its second deal in total, following its investment in Jet Set, a skiwear company, for an undisclosed amount in November 2006 when the firm was formed.

Elsewhere in the office space sector, Blackstone has increased its bid for Sam Zell’s Equity Office Properties from $36 billion to $38.3 billion to fend off opposition from real estate investment group Vornado Realty, according DowJones Newswires, a news service.