Cube buys Lehman’s share in Picasso Investments for £50m

Cube Real Estate, the London-based property investment company, has bought out Lehman Brothers 49% shareholding in Picasso Investments, the joint venture launched by the two companies in October 2002.

The £50m deal means that Cube now controls Picasso and its remaining assets, which include: Plantation Wharf, Battersea; the Arena at Stockley Park, Heathrow; Nicholsons House in Maidenhead; and the Odyssey Centre in Birkenhead.

Stuart Loggie, Director of Cube Real Estate, said: “The acquisition fits with our strategy to grow core Cube holdings. Although we now own 100% of Picasso, we continue to co-invest with Lehman Brothers in Strummer Investments, the £150m joint venture we launched together in mid 2006, and are keen to explore further opportunities to work with them in future.”

James Jakeman, Executive Director of Lehman Brothers, said: “Cube have delivered great returns from the Picasso portfolio but are looking for a longer term hold strategy whereas we have always been more focused on short and medium term performance. This transaction suits perfectly our respective strategies and acts as a positive platform for our ongoing relationship within Strummer Investments.”

Cube and Lehman Brothers formed Picasso Investments in 2002 to acquire and actively manage a series of mixed-use commercial properties, generally multi-let and partially income producing. The £100m joint venture fund was fully invested by December 2005 having acquired a series of properties that were fundamentally sound but where services and amenities needed to be revived and modernised.

The acquisition was financed by Cube and did not require third party capital investment or external shareholders.