Global law firm Ashurst has advised Qualitas on the establishment of a real estate private credit platform in Europe through the acquisition of the investment management business of UK-based Starz Real Estate (Starz).
Founded in 2018, Starz is a UK-based CRE private credit manager overseeing a £376 million CRE credit portfolio across the UK and Europe. Under the acquisition agreement, the newly established European division of Qualitas will assume management of the existing portfolio (the Manager), comprising 11 investments. The total financial consideration for the acquisition is A$36.5 million which will be met from existing cash reserves of Qualitas. Of this total, A$28 million is specifically for the purchase of the Starz co-investment positions held by the Manager and the remaining A$8.5 million of the consideration is for the purchase of the net positive working capital, most of which is in the form of cash currently held by Starz.
The Ashurst team was led by partners Sara Hamzawi and Christy O'Connell, supported by senior associates Daniel Johnstone and Ellie Conroy and associate George Elliott. Partner Ruth Harris and senior associates Thomas West and Stephanie Bull advised on the loan portfolio aspects, with partner Nick Goddard and senior associate Donald Corbett advising on funds matters and partner Tim Gummer and senior associate Euan Mills advising on tax and partner Ruth Buchanan and senior associate Charlotte Ball advising on employment.
