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£8bn merger completes

Jude Buttle

F&C has completed the merger of its property asset management business in the UK and Ireland with REIT Asset Management.

The deal, which was first announced in July, saw F&C pay REIT owners £25m cash and £35m in loan notes for a 70% ownership of the new firm. REIT's owners hold the remaining 30% interest.

Subject to the newly combined company, which will be called F&C REIT Asset Management, achieving certain EBITDA performance targets, the REIT owners may increase their share up to 40% during the period to the end of 2014.

Former F&C UK retail head Nick Criticos has moved to become the new company's chief executive, with REIT founders Leo Noé and Ivor Smith appointed executive chairman and executive member respectively.

The new business will create a global business with £8bn of assets under management.

A statement from F&C to the stock exchange yesterday said: "The Board will continue to monitor closely the impact of the new structure on the investment management of the Company's assets going forward to ensure this remains in line with the Company's stated strategy and performance objectives."