Fladgate advises Arazim on Little Chef purchase

Our team: Richard Kaufman, Avram Kelman

Fladgate advised Arazim Investments, an Israeli property group listed on the Tel Aviv stock market, on its subscription for shares in the new entity comprising Little Chef for an undisclosed figure.

Arazim, who in March 2006 purchased and leased back 65 Little Chef sites from the People’s Restaurant Group (PRG) for a sum of £59m, have now reached an agreement for an Arazim subsidiary, in conjunction with R Capital, a well known venture capitalist to acquire a further stake in the chain. As a result of this new deal, Arazim has been granted an option to buy the entire equity share capital of the Little Chef Group within the next 12-18 months.

The transaction was handled by a cross departmental team at Fladgate, led by corporate partner Avram Kelman and property partner Richard Kaufman.

Avram Kelman commented, “We are delighted to have assisted Arazim in completing this transaction which took place in a tight timeframe over the Christmas/New Year period and had to be carried out as a matter of urgency as a result of the insolvency of the Little Chef Group”.

Richard Kaufman further added, “This acquisition highlights how Arazim is building on its well acknowledged expertise in the world of commercial investment”.

Arazim has been a client of Fladgate for over two decades.

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