CORPORATE PARTNERSHIPS
Abstract has pursued a strategy of limited diversification where it has identified interesting opportunities for value creation and enhancement.
With its knowledge of the Property Sector, Abstract looks for a combination of strong management with significant sector expertise and a low entry price where it perceives increasing demand, restricted supply and strong growth prospects.
In relation to non-property related activities, Abstract looks for companies engaged in disruptive technologies with strong management and significant market potential.
ROXHILL
In 2010 Abstract, working alongside management, introduced the finance for and invested in logistics developer, Roxhill Developments Group Ltd. Abstract and management co-invested alongside Forum Partners in the first round providing £40m in total for the Company. At that time the Roxhill management was led by David Keir and Jason Dalby, both of whom had significant previous experience with Kingspark, ProLogis, Rosemound and Goodman.
The company was hugely successful in securing some of the most valuable logistics planning consents in the U.K. with major rail freight enabled sites at East Midlands Airport and Junction 15 of the M1 and an extremely prominent site in Coventry at the edge of the airport.
The company was also successful at a number of other sites across the Midlands and South East.
In 2018, Segro took a major stake in the company’s development pipeline and Roxhill is now in the final stages of disposing of its interests in what has proved to be a very successful corporate relationship.
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PHARMACY2U
Abstract is a significant investor in Pharmacy2U, which is one of the first on-line pharmacy companies in the UK. Established in 1999, Pharmacy2U has played a pioneering role in bringing about changes and in shaping the health agenda in the new era of online pharmacies. It is now the country’s largest dedicated internet and mail order pharmacy.
Pharmacy2U now has two major NHS dispensing facilities in Leeds, close to the M1 and at Bardon near Leicester. The Bardon facility is recognized as being the most sophisticated online dispensing facility in Europe.
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VENTURE CAPITAL
In March 2001, Abstract acquired a 20% interest in a care home operator. Abstract procured both equity and debt finance to expand the operation, enabling it to increase the number of care beds it operated from 4,000 to 7,700 over the following 12 months and in August 2002 the company was sold to West Private Equity. The company was worth £15 million at the start of Abstract’s involvement and was sold in August 2002 for over £46 million.
CONSULTANCY
Abstract has undertaken consultancy support work over a number of years. In October 2002, Abstract was appointed by J.P. Morgan Cazenove to assist them in the quantification and negotiation of their dilapidations liability in respect of their former premises in the City of London. The success of this mandate led to the release of a significant reserve by J.P. Morgan Cazenove in 2004. This was followed by a mandate, by ProLogis, the world’s largest developer and owner of warehousing, to provide special consulting services throughout Europe.
After the recession of 2008 Abstract actively advised a number of major international investors seeking to restructure debt portfolios. Abstract has now been involved in transactions with property assets valued in excess of £1 billion, interacting directly between the investors and banks and seeking to achieve long-term solutions to these problems. Abstract has also been active in the CMBS market and has traded this debt in its own right.
In September 2013 Abstract concluded its advisory role for the international law firm, CMS Cameron McKenna, in its search for a new office in the City of London. As a result of Abstract’s work, CMS leased 140,000 sq. ft. in Cannon Place and was subsequently able to expand its occupancy to 226,325 sq. ft. as a result of its merger with Nabarro and Olswang.
