Buccleuch Group cuts property arm equity stake

Scotland's biggest private landowner has required a large injection of foreign capital to restructure its property investment arm.

The Buccleuch Group, which owned half of Native Land, has had to cut its equity stake in a successor venture to only 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."