Alantra advises Richborough on its debt funded MBO supported by Beechbrook

Jan 2020

Debt financing

The UK Midlands team of Alantra, the independent, global investment banking and asset management firm, has advised Richborough Estates (“Richborough”), the specialist land promotion business, on its MBO funded by Beechbrook.  Beechbrook is also providing a credit facility to support the company’s future growth.

Based in Birmingham and founded in 2003, Richborough is one of the UK’s leading strategic land promoters.  The business helps landowners and local stakeholders to realise the potential of their land and to bring it forward for sustainable residential development. Richborough has a strong track record, working on sites already earmarked under Local Planning Authorities’ existing development plans.

The Alantra M&A team comprised Partner Richard Sanders, Director Richard Benyahia and Associate Matthew Kumeta, alongside Director Guy Taylor and Analyst Jack Anstis from Alantra’s Debt Advisory team.

Paul Campbell, Chief Executive at Richborough Estates, said: “As a land promoter, we incur all costs ourselves and are remunerated only after the site is sold to our chosen development partner. The planning process can be long and complex, often incurring considerable costs, so it’s essential that we have suitable funding in place to facilitate this process.

“The facility that we have secured from Beechbrook, with the expert advice of Alantra, enables us to deliver on our extensive pipeline of sites, and to focus on new acquisitions nationally with a strong and motivated management team.”

Tim Johnston, Investment Director, Beechbrook, added: “We have really enjoyed working with the team at Richborough, who are highly regarded in the land promotion market, and we are looking forward to supporting the Richborough team over the coming years as they continue to develop their excellent track record.”

Richard Sanders, Midlands Senior Partner, Alantra, commented: “We are delighted to have supported another local success story.  Richborough has been through a significant growth phase and is now well-placed to help fulfil the well-publicised housing shortfall.  The business is currently working on a tremendous pipeline of opportunities and looks set to continue its growth trajectory over the coming years.”

Guy Taylor, Director, Alantra, added: “There has been strong appetite from lenders for this opportunity as a result of the experienced management team, their impressive track record of planning success and the implicit value in the Richborough promotion agreement portfolio.”