Developer buys mixed-use regeneration specialist, adding nine developments to its pipeline

Morden Wharf

Development Securities (DevSecs) has acquired mixed-use regeneration specialist Cathedral Group, adding nine development projects to its pipeline.

Listed DevSecs has acquired privately-owned Cathedral Group for an initial 拢20.9m, with additional future considerations this could rise to 拢27.4m.

Cathedral Group鈥檚 chief executive Richard Upton and its chairman Barry Bennett join the DevSecs board as executive director and non-executive director respectively.

Two of the nine projects acquired - The Old Vinyl Factory and Morden Wharf - are existing joint venture projects between DevSecs and Cathedral.

A DevSecs spokesperson said the combined firm will 鈥渁ctively pursue further acquisitions in order to expand our existing pipeline of projects鈥� with a 鈥渇ocus on regeneration opportunities, particularly in Greater London and the South East鈥�.

The combined firm will conduct a review of the residential elements of all its planned developments to review 鈥渄elivery options鈥�, the spokesperson said, adding: 鈥淭his may include development for sale or development for private rental within a PRS model.鈥�

Michael Mark, DevSecs chief executive, said: 鈥淐athedral share our entrepreneurial and creative spirit and I am confident that the additional capabilities they bring will enable the enlarged group to accelerate its growth and deliver enhanced value to shareholders in the years ahead.鈥�

Upton said: 鈥淲e are confident that the integration with Development Securities will provide a stronger platform as we progress our existing portfolio of developments towards completion, and secure additional projects to further contribute to the growth of the company.鈥�

Cathedral Group projects

Seven development projects (4.5 million sq ft):

  • Telegraph Works in Greenwich
  • Morden Wharf in Greenwich
  • The Deptford Project in Deptford
  • St. Mark鈥檚 Square in Bromley
  • The Old Vinyl Factory in Hayes
  • Circus Street in Brighton
  • Spirit of Sittingbourne in Kent

Two development opportunities (582,700 sq ft):

  • The Albany in Deptford
  • Preston Barracks in Brighton

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