‘Game changer’ deal sees listed firm acquire stake in Ask Real Estate

Integrated support services firm Carillion plc has snapped up a majority stake in Manchester-based property firm Ask Real Estate, buying out the company’s four founding shareholders for an undisclosed sum.

Following the deal, MD John Hughes and FD Jonathan Cross will continue to hold their executive positions and will be joined on the board by Carillion’s developments business director, Simon Eastwood, as well as strategy and investment director Peter Forsyth.

John Hughes said: “The Carillion investment into Ask Real Estate is a game changer for the business, presenting us with an exciting opportunity to marry our reputation for delivering high quality developments and spaces in urban centres with the expertise and financial resource of Carillion.”

Ask Real Estate is part of a joint venture, along with Carillion and real estate asset management firm Tristan Capital Partners, that is currently delivering the multi-million pound, two-phase Embankment development in Manchester.

Due for completion this July, phase one is centered around 101 Embankment, a 10-level development that includes 165,000 sq ft of office space and a Q-Park car park.

The planning application for phase two, 100 Embankment, will be submitted next month.

Carillion’s chief executive, Richard Howson, commented: “Carillion has established an excellent working relationship with Ask over many years and most recently on the Embankment project in Manchester and this investment will enable both businesses to build on that success at a time of exciting opportunities in the North of England.

“Carillion already has a strong presence in the region delivering prestigious projects in a number of places including Manchester, Liverpool and Leeds and this deal underlines our long-term commitment to the North.”

As part of the deal, Ask’s board will work with Carillion over the next five years to deliver commercial property developments across the key Northern Powerhouse cities with an estimated value of £500m.

Sir Howard Bernstein, Manchester City Council’s chief executive commended the investment and backing of Carillion, calling the deal a “further boost” to Manchester’s economic growth.

He added: “With pioneering developments such as First Street adding value and creating jobs, we expect Ask to continue to play a prominent role in the transformation of the city region and remains a key partner of the city council.”