Aussie firm Valad to buy UK property group

Teesland a British residential property manager, said yesterday that Scarborough, which owns 72.3 percent of the company, will be bought by Australia's Valad Property Group in a deal worth £865 million. Scarborough acquired a majority stake in Teesland earlier this year with a view to creating a pan-European property investment, development and fund management group.

Scarborough provides Valad with the opportunity to leverage its business model into the UK and European property markets, Valad said.

The principal assets of Scarborough that will be acquired by Valad include Scarborough Development Group, a UK property services platform; a UK portfolio of 20 investment properties and Teesland, among others.

Teesland said funds under management of the enlarged group will exceed £7.1 billion.Valad chief executive Stephen Day said yesterday that Valad intended to keep all 400 staff of Scarborough and Teesland but will relocate a Sydney executive director, Peter Hurley, to London.