THE Buccleuch Group has cut back its share in a luxury London property development company but will be investing more in the company’s projects.
The Duke of Buccleuch’s company owned half of Native Land through its Buccleuch Property business but has reduced that share to 10 per cent.
It disposed of the holding for an undisclosed sum, it was announced last week.
Buccleuch Property’s managing director, David Peck said: “Buccleuch has been a long-term shareholder and equity investor in every Native Land project over the past six years and will remain an enthusiastic and committed participant under the new structure.
But he continued: “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, ” he added.
He told TheSouthern: “We are not cutting back our property arm but are fully committed and investing more in this sector of the business than we did before.”
A private Gulf-based investor has snapped up a 45 percent share in the residential development company, which builds houses in some of London’s most exclusive neighbourhoods such as Chelsea and Belgravia
News agency Reuters said it was told the group of investors were from Qatar and were linked to the royal family.
Native Land’s original management team has retained a 45 per cent share in the company the three shareholders have formed, Native Land Investments.
The developers plan to invest an initial £500million in sites and projects across central London over the next two years.
The new capital will fund a planned development programme of £1billion, said the company.
Native Land’s current development programme includes three joint ventures including an award-winning construction next to Tate Modern, a 100,000 sq ft project in Chelsea and a 180,000 sq ft development overlooking Kensington’s Holland Park.
Earlier this year, the Buccleuch Group reported a return to profit after financial losses in previous years.
The Duke of Buccleuch is Scotland’s biggest private landowner.