Buccleuch Group cuts property arm equity stake
Scotland's biggest private landowner has accepted a large injection of foreign capital to restructure its property investment arm.
The Buccleuch Group, which owned half of Native Land through its Buccleuch Property division, has cut its equity stake in a successor venture.
It was reduced from 50% to 10%, after an unnamed investor from the Persian Gulf took 45%.
The restructuring follows commercial property losses for Buccleuch.
The group reduced its stake for an undisclosed sum.
The Native Land management team has retained a 45% shareholding in the successor venture, Native Land Investments.
The new firm, which specialises in residential development in central London, will initially invest up to £500m in sites and projects there over the next two years.
In April the Buccleuch Group, which is based in Edinburgh, reported it had returned to a modest profit after hitting severe financial difficulties.
Buccleuch Property managing director David Peck said: "Buccleuch will remain an enthusiastic and committed participant under the new structure.
"We are operating in changing times and needed to ensure we had access to significant capital with a partner who will be fully aligned with the business, both financially and culturally.
"Buccleuch has a diverse portfolio and we are fortunate to be operating in a market where we see continued opportunity and growth."