KPF London Plan Split

One of the world's leading architecture firms, Kohn Pederson Fox, could be about to have it's biggest shake-up in years if plans to spin the London office out of the business go ahead.

The London branch of KPF has become increasingly successful over the last decade having not only designed a number of choice skyscrapers in the United Kingdom such as the Pinnacle and Heron Tower, but also won an increasing number of contracts abroad, and in particular in the Middle East with projects currently on the go of about £5 billion pounds.

The moves to demerge the firm now at the point the property market is bottoming out and investors are starting to raise funds for new development again marks an ideal point for the businesses to split just in time for the next economic cycle.

The structure of KPF is essentially a partnership with all the partners owning shares in the business. To divide the company into two, what will effectively happen is the British partners will swap their shares with their foreign counterparts surrendering control in the main company but gaining it in the new London based one although one set of partners may have to also make financial contributions to the other depending on how the businesses divide.

The differences between the two flanks of the firm have been noticeable for some time in design terms with the British part producing less conservative, more organic designs than their American counterparts.