Irish Life and Permanent has sold its subsidiary company Irish Estates Management to a group of private and institutional investors led by Niall McFadden. The companies did not disclose the price, but market sources suggest the deal is worth around €20m.
Meanwhile, the consortium has also bought facilities management company Vector and intends to merge both companies immediately with the aim of becoming the market leader in business support services in the country.
The acquisitions have been financed by a combination of equity, equity roll-over and debt.
Niall McFadden will be chairman of the merged entity and Martin McMahon, currently managing director of Vector, will be it Group Chief Executive.
The new entity will manage a property portfolio of over 30 million square feet and will be responsible for expenditure of over €200m. It will have a total of 179 employees and a client base which includes Irish Life and Permanent, Google, IDA Ireland, Shell Ireland, Carphone Warehouse and Irish Aviation Authority.
It will retain the existing employees of both Irish Estates and Vector and plans to develop through a combination of organic development and acquisitions.
IL&P said it was selling Irish Estates following a strategic review of its operations. It said the decision to sell is in line with the bank's stated 'Ireland first' strategy which focuses on the personal retail financial services market here.
