Leading growth market investor Actis, today announced via a press release that it has agreed to sell its stake in Mentor Management Limited (MML) a Kenyan project management company, to Turner & Townsend, a UK-based real estate construction and advisory firm.
The deal, still subject to regulatory approval, will see Turner & Townsend acquire Actis’ 79.5% majority stake while the management team of MML retains its minority stake. Actis was advised by I&M Burbidge Capital on the transaction.
Turner & Townsend, the new proprietors will merge its Kenyan arm with MML to form a new entity, MML Turner & Townsend delivering projects across real estate, infrastructure and natural resources sectors.
Back in 2011, Actis acquired a controlling stake in MML at a time when its international execution capability in East Africa was yet to mature. In a bid to bridge this gap, Actis brought MML’s expertise in-house following previous successful collaborations.
Since then, MML’s revenue quintupled and it has become a well-known project manager in East Africa. With third-party clients trusting on MML’s capacity and capability to deliver scale projects to an international standard, such as the US$350m Garden City project.
Commenting on the transaction, Michael Turner Head of Actis’ Nairobi office said:
“East Africa is a key market for Actis’ real estate team, with strong macro and real estate fundamentals. The interest received from strategic investors reflects these fundamentals and MML’s market-leading position, we look forward to a continued business relationship with MML Turner &Townsend as we continue to build our reputation as the most experienced sub-Saharan African private equity real estate investor.”
John Rogers, Managing Director of MML added: “Actis has helped propel MML to become the largest and most respected project management business in East Africa over the past 7 years, we now look forward to working with Turner & Townsend to extend our reach even further and offer additional services to our clients.”
Vincent Clancy, Turner & Townsend’s Chairman and CEO said the merger with MML will result in MML Turner & Townsend becoming the “largest independent” project and programme management company in East Africa. He said: “This is the next step in our African expansion plan as we continue to grow across the continent.”
Turner & Townsend which started out in the UK as a quantity survey firm in 1946 has had a presence in Africa for over 34 years. It will join MML’s Nairobi operation, as a combined team of over 40 experts, delivering a range of services including advisory, programme management, project management and cost management.