Buccleuch’s focus on UK after £50m Aussie sale

Buccleuch Property has sold a business park in Australia for A$76.8 million (£49.7m) as it prepares to shift its focus back to the UK.

The Edinburgh-based firm sold Sir Joseph Banks Corporate Park in Sydney – a joint venture with Grosvenor, the Duke of Westminster’s property company – to the Dexus Wholesale Property Fund.

David Peck, managing director of Buccleuch Property, said it was “an advantageous time in which to realise the profits from this 15 year investment”, given the relative strength of the Australian market and favourable exchange rate against the Australian dollar.

“We have been selectively selling a number of assets over the past 18 months and are just starting to consider our reinvestment options in the UK domestic market,” he added.

Buccleuch said the 31,000 square metre development had been beneficial for both itself and Grosvenor, delivering a return of about 15 per cent a year over a 15-year period.

The joint venture developed the business park in five stages from 1996 to 2004.

It is home to major companies including Virgin Blue, Abbott Pharmaceutical, Konami and Schindler Lifts.

The Buccleuch Group, the parent company behind the property vehicle, is chaired by Richard, the tenth Duke of Buccleuch and 12th Duke of Queensberry. The group runs country estates at Boughton, Bowhill, Dalkeith, Drumlanrig and Langholm.