London-based PRICOA Property Investment Management (PPIM) has confirmed that it is in discussion with US parent company Prudential Real Estate Investors about a management buy-out (MBO) of the European operations.
In a statement from the US, Prudential said that it had agreed ‘in principle’ to the proposed MBO, but could not comment further.
The management team of PPIM, headed by chairman and chief executive Richard Plummer, managing director Robert Gilchrist and chief financial officer Jon Austen, are expected to acquire 100% of the business with a final deal expected shortly. PRICOA’s private equity arm will not be part of the deal, according to reports.
PPIM manages more than £1.2bn (e1.8bn) in real estate assets across Europe.