Posts Tagged ‘Khalid Affara

17
Jul
09

Arab Investments in exclusive talks to buy Coffee Republic

arabinvestments

The property company behind plans for one of London’s tallest skyscrapers has emerged as the surprise potential buyer of Coffee Republic.

Arab Investments, a private property investment company best known for its proposed Pinnacle tower in the City of London, on Friday entered into an exclusivity agreement with KPMG, which is acting as administrator to the coffee shop chain.

If successful, Arab Investments intends to put money into developing the Coffee Republic brand in the UK and overseas, and will start expanding the branch network immediately after completing the deal. It is thought to be in talks to acquire about 80 outlets, of which 20 are outside the UK, in countries such as Saudi Arabia and Bulgaria.

Arab Investments is thought to see the chain as having a strong brand name, which can be grown to challenge larger chains such as Starbucks and Costa. The deal is thought to be largely opportunistic, with the owners of Arab Investments seeing the chance to buy a large chain of leasehold outlets at a cheap price. No financial details of the transaction were provided.

KPMG confirmed that it had granted a period of exclusivity to the preferred purchaser of Coffee Republic, but declined to comment on the identity of the buyer.

Joint administrator Richard Hill said: “As expected, the huge volume of enquiries from interested parties produced a very healthy level of offers. We have spent the last few days clarifying the terms of the most attractive offers and we have now identified our preferred purchaser.

“We have agreed a period of exclusivity to allow that party to carry out some limited due diligence, which should enable us to agree the terms of the sale of the residual business as a going concern during the course of next week.”

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