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Rutley receives Romanian bid

The private equity real estate arm of property services firm Knight Frank received a takeover bid from Romanian property company Black Sea Global Properties for its London listed European property fund. Fund share values doubled as a result.

Rutley European Property, the London-listed property fund of Rutley Capital Partners, has received a takeover bid from Romanian property company Black Sea Global Properties, making its shares double in value.

News of the bid by Black Sea Global Properties, led by Romanian entrepreneur Dinu Patriciu, saw Rutley’s shares soar from 4.13p to a high of 9.75p last Wednesday. The shares have since dipped slightly to 8.13p today.

The announcement by Black Sea Global Properties came just weeks after Rutley European Property, which is managed by property services firm Knight Frank’s private equity arm Rutley Capital Partners, announced itself that it had received numerous proposals from potential buyers and funders.

The sale of the fund, which raised £162 million in capital to spend on pan-European, core-plus real estate, started late last year. Financial advisor Cenkos Securities was appointed to consider a sale last November after the fund’s shares price started trading at a wide discount to net asset value.

The fund has assets in Germany, Poland, Sweden and Belgium and approximately €476 million in debt.