The Los Angeles based Evoq Properties Inc. has announced it will be sold to an investment group for a whopping $357.4 million. The investment entity is led by affiliates of Atlas Capital Investors. Some other investors in the group are USAA Real Estate Company and Square Mile Capital Management.
The portfolio of Evoq Properties includes a number of buildings in downtown Los Angeles. One of them is the colossal office campus Alameda Square. Back in February the company gave indication of a possible acquisition. CEO Martin Caverly said back then, “There’s a tremendous amount of interest in Downtown L.A. in particular from institutional investors.”
The stakeholders of Evoq Properties will receive $12.96 for each share in the sale. The sale is expected to be completed by October this year. The board of directors of the company have already given go ahead to the transaction. The chief gainer will be Mmpi Acquisition, a venture funding company, set up by Mount Kellett Capital Management and Global Asset Capital in 2011. It is currently the largest shareholder in Evoq.
The history of Evoq Properties is quite fascinating. The company was created by Richard Meruelo and John Maddux. It was originally called Meruelo Maddux Properties Inc. It became a public limited firm in 2007 and two years later filed for protection from Chapter 11 Bankruptcy.
After the new managers stepped in, they expelled Meruelo and Maddux and changed the company’s name to Evoq Properties. To improve the company financial standing as well as reputation, the new managers sold off nonessential assets and developed the 32-acre Alameda Square. Evoq also owns additional 13-acres of properties in LA.
The investors Atlas Capital and Square Mile in the past have shown interest in properties that need repositioning and overall improvement. In downtown LA, there such properties are plenty in number and many of them were built by Evoq. CEO Martin Caverly said, “The acquiring investors recognized the tremendous value of Evoq’s portfolio and the opportunity to make a significant investment in downtown Los Angeles.”
According to Caverly, the company was redesigning the entire LA downtown with more than $36 million in cash. After the sale also rebuilding LA downtown will continue. “We are confident that the new ownership group will play a positive role in downtown Los Angeles’ continuing renaissance.” He said.