By Joe Hoppe
Savills PLC said Thursday that its subsidiary Savills Investment Management has formed a strategic investment alliance with Samsung Life Insurance Co. for an initial four year period.
The international real-estate advisor said that Samsung Life, a Korean-based life insurer, will acquire a 25% stake in Savills IM Holdings Ltd. for 63.8 million pounds ($90.1 million) in cash and commit $1 billion towards Savills IM's investment strategies over the initial four-year term.
The transaction, expected to complete in the fourth quarter of 2021 and conditional on various approvals, will allow Samsung to increase its interest by up to 10% over the term dependent on the amount invested, peaking at $2 billion of capital.
As part of a shareholders agreement, Savills IM will maintain complete autonomy.
"Samsung Life is a long-standing client of Savills both in Korea and internationally and this transaction will allow the strengths of both Savills Group and Samsung Life to drive further growth in the Savills Investment Management platform," Chief Executive Mark Ridley said.
Shares at 0736 GMT were up 17.0 pence, or 1.4%, at 1,200 pence.
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(END) Dow Jones Newswires