Bank Of Scotland Acquires Stake In Tulloch

The Bank of Scotland has acquired a 40% stake in £150m-turnover Tulloch Homes in its latest deal in the construction sector.The deal, worth £27.5m, comes days after BoS announced it had bought a minority stake in Miller Group.

Tulloch chairman and chief executive David Sutherland will remain the company’s largest shareholder with a 43% shareholding.

Sutherland said: "This is an excellent move for Tulloch Homes Group. We currently have a significant landbank at current volumes of five years across Scotland and this investment by Bank of Scotland will give us the opportunity to grow our business even further.

The Bank of Scotland said the Scottish housing market outlook was still considered to be strong, having outperformed the UK market over the past four years and with Halifax forecasting 2008 House Price Inflation at 4%.

Gordon More, head of joint ventures transactions at Bank of Scotland Corporate said: "The deal fits perfectly with our ambition to invest in the North of Scotland housing market, which we see as having strong growth potential over the coming years."

Established in 1925, Tulloch operates three principal brands through its house building division - Tulloch Homes, Tulloch Homes Express and Argyll Homes.