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Max £232m deal in doubt

Max Property Group says it debut purchase of a £232 million package of properties out of receivership has been put into doubt because receiver Ernst & Young says it has not been able to meet the conditions of the deal.

The completion of Max Property Group’s debut deal has been cast into doubt.

The Och-Ziff-backed property firm said in a London Stock Exchange announcement that it did not yet satisfy the conditions of the sale. Max added it was seeking clarification from the receiver, Ernst & Young.

On 5 August, the firm said it had exchanged contracts to buy the collection of UK assets, and that completion was expected by 7 October following the “fulfillment of certain conditions relating to the receivership”.

Max raised £211 million ($351 million; €252 million) in an IPO in May.

The acquisition of the Industrial portfolio was being financed with cash and £128.3 million in non-recourse, five-year debt facility arranged by Eurohypo. The deal is expected to close in October.

Max Property was the brainchild of real estate veteran Nick Leslau.