REIT Asset Management ("REIT") - General Other - UK

Date: 06 Aug 2008

Olswang has acted for high profile client REIT Asset Management ("REIT") on its proposed merger with the property asset management operations of listed company F&C Asset Management plc ("F&C"). The merged business will operate under the new brand F&C REIT Asset Management LLP ("F&C REIT") and will combine REIT, REIT Worldwide's property asset management business and F&C property asset management operations in the UK and Ireland. The merger creates a leading UK-owned property asset manager with £8.5 billion assets under management.

The REIT owners will hold a 30 per cent ownership interest in the combined business and F&C will hold the majority 70 per cent interest. The REIT owners' interest may increase to 40 per cent subject to F&C REIT meeting certain EBITDA performance targets. F&C will pay the owners of REIT Worldwide a consideration of £25 million in cash and a further £35 million of loan notes. Leo Noé of REIT will be Executive Chairman of F&C REIT, Nick Criticos of F&C will be Chief Executive and Ivor Smith of REIT will be Executive Member. The merger is conditional, inter alia, on the approval of F&C's shareholders.

REIT and F&C bring strong investment track records to the new brand. In addition, REIT's entrepreneurial approach and geographical diversity, combined with F&C's fund management skills and distribution network, present clients with a superior product offering from familiar and trusted teams and fund managers.

"Our merger with F&C is hugely beneficial for both businesses and is laden with great potential. It is one of the most significant business decision REIT has ever made and we trusted the intelligent approach of Olswang, having worked with the team for many years, to ensure we received timely, practical advice that would benefit our business and our people," said Leo Noé, Chairman of REIT.

REIT manages an international property portfolio of assets in the UK, Europe and India. Olswang has been advising REIT since Kanter Jules joined the Firm and has acted on acquisitions and disposals for the asset management specialist.

Corporate Partner Tony Leifer led the Olswang team with assistance from Corporate Associates David Bunker and Edd Heaton, Corporate Partner Amy Collins, Tax Partner Natasha Kaye, Employment Associate Rachel Lamb and Finance Associate Kacey Brown.

Norton Rose acted for F&C.

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