PROPERTY developer and investor Chris Stewart has sold a minority stake in his eponymous company to a US-based investment firm.
The transaction with an affiliate of Proprium Capital Partners, will allow the Chris Stewart Group (CSG) to negotiate deals with a financial backer in place. Proprium has acquired a stake and provided new capital, though no details were disclosed.
The first deal concluded under the new partnership is the purchase of Baxter’s Place, a derelict Georgian terrace building in Edinburgh neighbouring the Playhouse theatre. It is designated for a 240-bed upmarket hotel development.
CSG has developed a number of historic sites in Edinburgh, including Waterloo Place close to Waverley Station, and the £46 million Advocate’s Close development off the Royal Mile. Stewart is now looking at projects beyond Scotland.
Stewart, founder and chief executive, said: “The partnership with Proprium is a major breakthrough for our company. We have operated mainly in Scotland to date, focusing on giving heritage buildings a viable and dynamic future.
“The investment from Proprium and the working partnership that it brings now means we have significant firepower to transact more effectively on larger scale projects and address a broader market.
“This is an exciting time for the business, allowing us to capitalise fully on our experience and deal pipeline.”
Proprium, headquartered in Stamford, Connecticut, is run by former executives at Morgan Stanley’s real estate division and now control in excess of $2 billion (£1.2bn) of assets under management globally.
Philipp Westermann, Proprium’s head of Europe, said: “Chris Stewart Group is a fast-growing and entrepreneurial company with an outstanding track record. We are excited at the prospect of contributing to its future success through this capital injection.”
Barclays, DLA Piper and Dickson Minto were advisers on the transaction.