PrimePitch acquires stake in Propex

21 Nov 2001

PrimePitch has agreed to invest £300,000 in Propex, the commercial property industry's platform for communicating property transactions. In addition it will provide new management resources to develop the company's operations and ensure its long-term future.

For its investment, PrimePitch will acquire a 33% stake in Propex, matching the stake held by a consortium of property investors (The Investor Group) and that of the original investors including Barber White and Brainspark.

The Investor Group comprises 10 of the UK's leading fund management and property companies, who have reiterated their support for Propex and taken up annual subscriptions for over 250 executive users within their organisations. 

Propex will remain an independent company and Paul Marples, currently joint managing director of PrimePitch, will be appointed its chief executive. The existing Propex management team will also remain in place.

It is understood the terms of the Agreement encourages the active participation of the Agency Community and the Company is discussing a number of incentives to encourage their participation.

Paul Marples, director of PrimePitch, comments:

"The synergy is superb. Propex will remain an independent company working closely with PrimePitch to make commercial property a more efficient marketplace for the benefit of vendors, investors and agents." 

Ian Reid of Aberdeen Property Asset Managers, Chairman of the Investor Group:

"Now that the Propex system is up and running, this development represents an excellent solution for the company's future. In particular, it ensures the wide industry participation in the enterprise which the Investor Group was seeking. We are impressed with PrimePitch's achievements to date and the capital investment, along with added impetus and marketing skills should ensure that Propex quickly becomes an integral part of the UK property market."

David Leppard of Strutt and Parker states:

"Several leading property agencies were disappointed in August when a collaborative solution to this initiative was not finalised. We believe Propex is good for our industry. PrimePitch is making the required investment, has secured the leading property owners and has a proven track record."

Colin Barber of Propex says:

"The marriage of the two internet sites is a perfect fit. With backing from the institutions and major property companies, Propex provides a communications tool for the property profession while PrimePitch provides a means for the market to communicate with the private and non-institutional investor."