Sir Fraser Morrison, the owner and chairman of architect RMJM, is the backer behind the investment firm that bought RMJM for £11m in late March.
Declan Thompson, RMJM’s group commercial director, said the deal, which involved Duthus Investments buying RMJM Architecture Limited for £11m, would wipe £12m of debt off the RMJM books and allow the firm to reinvest.
According to Companies House, Duthus Investments was incorporated on the 5 March.
Sir Fraser Morrison is a construction tycoon and one of Scotland’s wealthiest individuals and Thompson said the investment firm was part of his “family of investment companies”.
Morrison bought a 56% share in RMJM in 2002 and installed his son Peter Morrison as chief executive in 2006. At the time of the sale to Duthus Investments earlier this week Morrison owned 75% of the voting rights.
Thompson said the sale was a “simple thing to allow Sir Fraser Morrison to write off £12m” and was part of the board’s “strategy to get rid of debt off the books”.
He added that the deal left the firm with debts totalling around £11m and that the firm was “quite optimistic” about the future.
Thompson said the firm’s cash flow problems, which have seen staff receive salaries late and pension payments delayed, were now behind it following the sale.
“RMJM has spent much of 2011-12 doing difficult things and making difficult choices to get the business stable,” he said.
He said the loss of a number of senior staff over the last year had been wrongly reported by the media. “In quite a lot of instances those people have been asked to leave the business because they weren’t performing,” he said.
He added there were no more plans for further cuts to staff numbers and the firm would be hiring new staff where necessary. “We have got to the point where we have enough, or just enough, very busy architects,” he said.
Thompson said he had no plans to add to the senior team, which includes recently-appointed principal Jonathan French, who joined from David Chipperfield Architects earlier this year.
Thompson said he expected to see recovery in the Chinese and Middle East markets to return some growth to the firm. “The UK market is going to stay quite difficult,” he added.
http://www.building.co.uk/buildings/architecture/morrison-emerges-as-backer-behind-rmjm-buyer/5052760.article
Related Stories
Products and Materials | Aug 8, 2024
EPA issues $160 million in grants for clean manufacturing of steel, other construction materials
The U.S. Environmental Protection Agency will provide 38 grant recipients with nearly $160 million to support efforts to report and reduce climate pollution from the manufacturing of construction materials and products.
Green | Aug 7, 2024
Major cities worldwide set building performance standards
Cities around the world are setting building performance standards (BPS) as a key measure to cut emissions and meet climate targets, according to a report from JLL.
Codes and Standards | Aug 6, 2024
New tool helps with selection, installation of heat pump water heaters
A new web-based tool by the Department of Energy offers comprehensive information about how to size, select, and install electric heat pump water heaters (HPWHs).
Regulations | Aug 4, 2024
Diversity rules largely ignored on Boston construction projects
Not a single construction project in Boston over the past four years has met all the rules intended to diversify the construction industry and increase the number of city residents working on construction sites, according to a report in the Boston Globe.
MFPRO+ News | Aug 1, 2024
Canada tries massive incentive program to spur new multifamily housing construction
Canada has taken the unprecedented step of offering billions in infrastructure funds to communities in return for eliminating single-family housing zoning.
MFPRO+ New Projects | Jul 31, 2024
Shipping containers converted into attractive, affordable multifamily housing in L.A.
In the Watts neighborhood in Los Angeles, a new affordable multifamily housing project using shipping containers resulted in 24 micro-units for formerly unhoused residents. The containers were acquired from a nearby port and converted into housing units at a factory.
Geothermal Technology | Jul 29, 2024
Rochester, Minn., plans extensive geothermal network
The city of Rochester, Minn., home of the famed Mayo Clinic, is going big on geothermal networks. The city is constructing Thermal Energy Networks (TENs) that consist of ambient pipe loops connecting multiple buildings and delivering thermal heating and cooling energy via water-source heat pumps.
Smart Buildings | Jul 25, 2024
A Swiss startup devises an intelligent photovoltaic façade that tracks and moves with the sun
Zurich Soft Robotics says Solskin can reduce building energy consumption by up to 80% while producing up to 40% more electricity than comparable façade systems.
Codes and Standards | Jul 25, 2024
GSA and DOE select technologies to evaluate for commercial building decarbonization
The General Services Administration and the U.S. Department of Energy have selected 17 innovative building technologies to evaluate in real-world settings throughout GSA’s real estate portfolio.
Office Buildings | Jul 22, 2024
U.S. commercial foreclosures increased 48% in June from last year
The commercial building sector continues to be under financial pressure as foreclosures nationwide increased 48% in June compared to June 2023, according to ATTOM, a real estate data analysis firm.
