Australian-listed Valad Property Group is to acquire UK property company Scarborough. The deal, worth £865 million (€1,286 million), will create a substantial pan-European and Australasian property investment, development and funds management group when completed in mid-July. Funds under management of the enlarged group will exceed £7.1 billion (€10.6 billion).
Among Scarborough's assets are Scarborough Development Group, a UK property services platform, a UK portfolio of 20 investment properties, and 72.3% of Teesland plc, a pan-European property funds management company listed on London Stock Exchange with over £3.7 billion (5.5 billion) under management.
Scarborough acquired a majority stake in Teesland plc earlier this year with the vision of creating an integrated property investment, development and fund management group with a pan-European focus. This next step will enable the group to operate on a broader international scale.
The acquisition also brings with it half shares in two joint ventures with HBOS: Scarborough Continental Partners, and Scuro the latter of which focuses on emerging markets in Central and Eastern Europe.
Scarborough management personnel (including Teesland/iOG) will remain part of the enlarged group which now has close to 400 people across 15 countries. Kevin McCabe, executive chairman of Scarborough, is to join Valad's Board. McCabe, who founded Scarborough in 1980, commented: "We are delighted to have found a focussed and disciplined partner in Valad that shares our business culture, operating style and vision of the future of global real estate investment. The Valad business model is clearly at the forefront of the evolution of the listed property trust and REIT sectors.
Valad Property Group is a diversified property funds management company founded in 1995. Based in Sydney, the company has achieved significant growth since listing in 2002, with assets under management now £2.8 billion (4.16 billion).
"Scarborough and Valad recognise the opportunities and synergies that the enlarged group will offer investors and shareholders.