The deal was led by chief executive David Alberto and backed by Kenmore Private Equity (KPE).

London-based Avanta is now looking at a £100 million expansion plan funded by bank debt and equity from KPE. It is expected to manage about one million sq ft of serviced office space by 2008.

The company aims to acquire freeholds, take leaseholds and grow its corporate outsourcing business in London and other cities across the UK.

Avanta was founded in 2004 by Alberto and manages some 280,000 sq ft of office accommodation. Before the buy-out, the company was a partnership between Alberto and Hamilton Bradshaw, a private equity firm.

The investment is KPE’s second, following its funding for skiwear firm Jet Set in November 2006. KPE was led by Rob Brook.