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| One of the projects being developed by Native Land, the NEO Bankside, a scheme of 227 luxury apartments to come up on the opposite side of the River Thames from St Paul’s Cathedral |
A group of Qatari investors have snapped up a stake in London luxury property developer Native Land, the latest in a string of deals in which the Gulf state has extended its ownership of Britain’s capital in recent years.
Native Land, which builds houses in some London’s most exclusive neighbourhoods such as Chelsea and Belgravia, said yesterday that a “substantial private Gulf-based investor” had taken a 45% shareholding in the company.
A source familiar with the deal told Reuters the group of investors were from Qatar.
Investors from Qatar have embarked on a shopping spree in western Europe over the past few years.
Their investments in Britain include upmarket department store Harrods and a stake in Songbird Estates, owner of London’s second financial district Canary Wharf.
Qatar also owns The Shard, the European Union’s tallest skyscraper, which opened earlier this month in London amid great fanfare but no office tenants.
The deal with Native Land will involve the firm’s management retaining a 45% stake, while Scottish estate Buccleuch Group would reduce its majority share to 10%. The companies did not say how much the Qatari investors paid.
The three shareholders will establish a new company, Native Land Investments Ltd, which will invest up to £500mn ($785mn) in Native Land sites and projects across central London over the next two years, and will also fund a development programme of £1bn.
“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,” said David Peck, managing director of Buccleuch Property.
Native Land’s development pipeline include NEO Bankside, a scheme of 227 luxury apartments designed by architect Richard Rogers on the opposite side of the River Thames from St Paul’s Cathedral.
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”, Native Land said in a press statement sent to Gulf Times.
Alasdair Nicholls, chief executive of Native Land, said in the statement: “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,” he said.
“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”, Nicholls added
Native Land was advised by Deloitte, CMS Cameron McKenna and Clyde and Co, while KPMG and Berwin Leighton Paisner advised the Gulf-based investor, the statement said.