The Warrington-based developer’s board has taken full control of the company after buying out a 30% stake held by Network Space.
Langtree was formed four years ago when group chief executive John Downes led a management buyout of the public sector joint venture interests of Langtree Group.
Land ownerships of the original company, a property portfolio, and property management functions were retained by the Ainscough family business and rebranded as Network Space, while Network Space also retained a 30% stake in the newly-formed Langtree after providing initial capital to get the company up-and-running.
Langtree’s board has now bought out this 30% stake, giving it full control of the company in a deal worth in excess of £2m.
Langtree has several joint ventures with local authorities and the Government, including Sci-Tec Daresbury with the Science and Technology Facilities Council, and others with Oldham, Warrington and St Helens Councils. It also has a long-term relationship with fund manager PGIM.
Overall, the company manages around £200m of assets and will publish full-year results in the coming weeks which are expected to show an increase in profit and net asset value.
John Downes said: “It’s been a good relationship. Network Space was a founding investor of our business, injecting equity and loan capital alongside my team and allowing us to hit the ground running.
“Its support was key to our success and I’m obviously pleased that we’ve managed to generate the cash in the business to acquire the shares. We’ve grown substantially in the four years since the MBO and so Network Space has achieved a good return from its initial investment.”
Network Space group chief executive and chairman Richard Ainscough said: “We retained a financial interest in the new company as we were confident that the personalities involved would drive the business forward and deliver for us an investor. Langtree has gone from strength to strength and it’s a great credit to the whole team that the business is in such good shape.
“We were pleased to be able to help them get started and now is the right time for us to realise our investment. We enjoy very good relations with our former colleagues and wish them all the very best for the future.”
FDR acted for Langtree while Network Space was represented by Pinsent Masons.