Native Land announces that a substantial private Gulf based investor has taken a 45% shareholding in the company.
The reorganisation will see the Buccleuch Group reduce its shareholding to 10% and receive an undisclosed sum for its shares, with Native Land’s management retaining a 45% ownership.
In parallel, the three shareholders have established a new company, Native Land Investments Limited, which together with future co-investment from Native Land’s current investor pool, the new company will invest an initial £500m of equity in Native Land sites and projects across central London over the next two years. This new capital will fund a planned development programme of £1 billion.
With this significant new backing Native Land will capitalise on its established reputation as a leading developer in the prime central London residential market, continuing its strategy of developing in its own right, as well as in partnership with leading UK and international property investment groups.
Alasdair Nicholls, Chief Executive of Native Land, said:
“We are delighted to welcome new shareholders into Native Land. The combination of our local knowledge and expertise, coupled with our investment capacity makes for a unique combination for a private property company in the central London residential market. We have a long track record and established reputation for creating value for investors through successful deal structuring, planning negotiations and ultimately the development of award-winning apartment projects. We believe this makes us ideally placed to partner with international co-investors seeking to capitalise on the enduring world wide appeal of London property”.
In a further strengthening of its team, Native Land also announced today the appointment of Stephen Musgrave, former Managing Director of both Hines UK and Grosvenor (UK and Ireland), as a Non-Executive Director. David Peck, Managing Director of Buccleuch Property will also become a Non-Executive Director of the company. These board changes follow the recent appointment of Clive Riding, former Managing Partner of Montagu Evans, as executive director with responsibility for management operations and finance.
David Peck, Managing Director of Buccleuch Property 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. 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.”
Native Land’s current development programme includes three joint ventures with Grosvenor – the multi award winning NEO Bankside next to Tate Modern, the 100,000-sq-ft Alpha Place project in Chelsea and the 180,000-sq-ft ‘super-prime’ Campden Hill project overlooking Kensington’s Holland Park.
Native Land was advised by Deloitte, CMS Cameron McKenna and Clyde and Co, while KPMG and Berwin Leighton Paisner advised the Gulf-based investor.