Graphite sells London Square to Ares Management

Ellie Pullen
03 July 2014

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Graphite Capital has sold property builder London Square to Ares Management for ТЃ110m.

Asset manager Ares has invested in the company through both its private equity and real estate funds.

Ares is already supporting London Square in its development of two current projects: the restoration and conversion of the grade-II-listed Royal Star & Garter Home on Richmond Hill and the development of 40 luxury townhouses in Fulham.

Graphite injected £50m in equity into London Square over two years. It backed the establishment of the business in 2010, taking a majority stake via its £475m Graphite Capital Partners VII fund.

At the time of Graphite's investment, London Square had offers for a debt facility of up to £50m from several banks.

Company
Founded in 2010 and headquartered in London, London Square is a developer of properties within the M25 motorway that encircles Greater London.

The company has completed developments in Shoreditch, Wimbledon and Ruislip. Aside from the Richmond Hill restoration and Fulham townhouses, London Square is currently working on gated apartment communities in Eastcote and Teddington, and apartment blocks in Parsons Green, Bermondsey and Putney.

Future projects include apartments in Streatham and Hayes.

People
Adam Lawrence is the CEO of London Square. Senior partners Andy Gray and Mike Innes, as well as investment manager Simon May, worked on the deal for Graphite. Charles Steel is a partner in Ares' private equity division; Bill Benjamin is a senior partner in its real estate group.

Advisers
Vendor – Travers Smith, Ian Shawyer, Russell Warren (Legal).