Development Securities is paying an initial £20.9m in cash and shares, rising to £27.4m depending on performance.
Cathedral adds nine mixed-use development opportunities to DevSec’s portfolio, including Telegraph Works in Greenwich and St Mark's Square in Bromley. Two of the nine projects – The Old Vinyl Factory in Hayes and Morden Wharf in Greenwich – are existing joint venture projects between Development Securities and Cathedral.
Richard Upton, Cathedral's 46-year-old chief executive who co-founded the company in 1998 and what is now Mount Anvil before that in 1991, joins the board of Development Securities as executive director; Barry Bennett, Cathedral's chairman and co-founder, becomes a non-executive director.
Richard Upton is the principal shareholder in Cathedral, owning 95% of the issued share capital, alongside managing director Martin Wood who owns the other 5%. In the year to 31 December 2012, the group reported a pre-tax profit of £3.9m. Unaudited pre-tax profits in the year to 31 December 2013 were approximately £6.8m.