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
Regulations | May 20, 2022
Biden’s Clean Air in Buildings Challenge aims to reduce COVID-19 spread
The Biden Administration recently launched the Clean Air in Buildings Challenge that calls on all building owners and operators, schools, colleges and universities, and organizations to adopt strategies to improve indoor air quality in their buildings and reduce the spread of COVID-19.
Codes and Standards | May 19, 2022
JLL launches non-profit aiming to mitigate climate change
Real estate and investment management firm JLL recently launched JLL Foundation, a non-profit dedicated to making a long-term impact on environmental sustainability.
Biophilic Design | May 18, 2022
Horticulturalists conduct research study to understand the value of biophilic design
Benholm Group, horticulturalists that have pioneered the use of plants for interiors over the past 27 years, are collaborating on a research study to understand the value of biophilic design, according to a news release.
Building Team | May 17, 2022
MKA’s Embodied Carbon Action Plan will include reporting on carbon reductions for selected projects
Magnusson Klemencic Associates (MKA) recently released its SE 2050 Embodied Carbon Action Plan (ECAP) for 2022.
Codes and Standards | May 16, 2022
AIA releases Justice in the Built Environment guide
The American Institute of Architects (AIA) recently published a new supplementary edition of the Guides for Equitable Practice, titled “Justice in the Built Environment.”
Codes and Standards | May 12, 2022
Solar industry creates non-profit to remove barriers to clean energy deployment
The Solar Energy Industries Association (SEIA) is launching a 501(c)3 non-profit organization to accelerate the transition to carbon-free electricity.
Green Specifications | May 12, 2022
MG2’s Sustainable Materials Evaluation System
Learn how MG2’s Sustainable Materials Evaluation System helps clients, prospects, and staff choose the most environmentally feasible materials for their building projects. Candon Murphy, LEED GA, Assoc. IIDA, Design Lab Manager and Materials & Sustainability Specialist with MG2, speaks with BD+C Executive Editor Rob Cassidy.
Esports Arenas | May 11, 2022
Design firm Populous partners with esports company on digital art NFT collection
Design firm Populous and multidiscipline esports organization Kansas City Pioneers have partnered on a five-part NFT collection.
Market Data | May 10, 2022
Hybrid work could result in 20% less demand for office space
Global office demand could drop by between 10% and 20% as companies continue to develop policies around hybrid work arrangements, a Barclays analyst recently stated on CNBC.
Standards | May 9, 2022
New GSA standards set carbon limits on building materials for all major projects
New General Services Administration standards place limitations on high carbon-emitting building materials for all major projects under the GSA umbrella.
