DevSecs acquires Cathedral Group

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 £20.9m, with additional future considerations this could rise to £27.4m.

Cathedral Group’s 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 “actively pursue further acquisitions in order to expand our existing pipeline of projects” with a “focus on regeneration opportunities, particularly in Greater London and the South East”.

The combined firm will conduct a review of the residential elements of all its planned developments to review “delivery options”, the spokesperson said, adding: “This may include development for sale or development for private rental within a PRS model.”

Michael Mark, DevSecs chief executive, said: “Cathedral 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.”

Upton said: “We 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.”