Acq of stake in Teesland

RNS Number:9278Y
Teesland Plc
25 June 2007


25 June 2007

AUSTRALIA'S VALAD PROPERTY GROUP TO ACQUIRE 72.3% INTEREST IN TEESLAND

Teesland plc ("Teesland" or "the Company") announces today (Monday) that
Scarborough, which among other assets owns a 72.3% interest in the Company, is
to be acquired by Australian-listed Valad Property Group ("Valad") in a
transaction worth #865 million. This will create a substantial pan-European and
Australasian property investment, development and funds management group.

Key points

*  Principal assets of Scarborough to be acquired are:

  -   Scarborough Development Group, a UK property services platform

  -   A UK portfolio of 20 investment properties

  -   72.3% of LSE listed Teesland plc, a pan-European property funds
      management company with over #3.7 billion under management

  -   50% interest in Scarborough Continental Partners, a 50:50 JV with
      HBOS

  -   50% interest in ScEurouro, also a 50:50 JV with HBOS which focuses on
      emerging markets in Central and Eastern Europe

*  Scarborough management personnel (including Teesland/iOG) to remain in
   enlarged group

*  Kevin McCabe, Executive Chairman of Scarborough, to join Valad's Board

*  Ian Robertson, recently retired Managing Director of Corporate Banking
   at Bank of Scotland, to join Valad's Board

*  Peter Hurley, Valad's Executive Director, will move to London. He is
   expected to join the Scarborough boards, including that of Teesland plc, as a
   non-executive director.

*  Funds under management of the enlarged group will exceed #7.1 billion.

*  The enlarged group will have close to 400 people across 15 countries

*  The transaction is expected to be completed by mid-July


Valad Property Group is a leading diversified property funds management company.
The group has provided investors with superior returns across the full risk/
return spectrum since it was founded in 1995. The Sydney based company has
achieved significant growth since listing in 2002, with assets under management
now #2.8 billion. Pursuing a global vision for its funds management business,
Valad is building on its reputation for creating innovative investment products
across key property sectors. Valad's diverse array of managed funds range from
higher return opportunity funds to low risk core and core plus funds.

Scarborough acquired a majority stake in Teesland plc earlier this year with the
vision of creating an integrated property investment, development and fund
management group with a pan-European focus. This next step will enable the group
to operate on a broader international scale.

Mr McCabe, who founded Scarborough in 1980, commented: "We are delighted to have
found a focussed and disciplined partner in Valad that shares our business
culture, operating style and vision of the future of global real estate
investment. The Valad business model is clearly at the forefront of the
evolution of the listed property trust and REIT sectors.

"Scarborough and Valad recognise the opportunities and synergies that the
enlarged group will offer investors and shareholders.

"Both management teams provide a complementary mix of skills and understanding
of property markets around the world," Mr McCabe said.

Valad's founder and Executive Chairman, Stephen Day, said the purchase of
Scarborough is another milestone in Valad's international diversification and
reinforces its innovative strategies that have won significant support from
securityholders in recent years.

"This move represents the 'next step' in Valad's stated strategy to establish
European and Australasian platforms for its operations and product offerings,"
Mr Day said.

"Scarborough provides Valad with the opportunity to leverage its business model
into the UK and European property markets through a highly successful business
which employs over 250 property professionals in 16 offices across 11
countries," he added.

Valad's Executive Director, Mr Peter Hurley, said the Scarborough transaction
provides the opportunity for powerful synergies and growth of the European and
Australasian businesses of the combined group.

"While Scarborough has been tremendously successful to date under private
ownership, it will now be able to pursue additional business opportunities with
Valad's stronger balance sheet," he added.

Mr Hurley will shortly move to London to lead Valad's European operations and is
expected to join the group's European boards, including Teesland plc.

"The Scarborough team have an impressive value-add approach that complements our
own culture," said Mr Hurley, who led the negotiations with Scarborough.


For more information contact:
 
Stephen McBride                        Jeremy Carey                          
Teesland plc                           Tavistock Communications              
Tel: [phone]                     Tel: [phone]                    

 
NOTES TO EDITORS

SCARBOROUGH

Scarborough is based in the UK and has substantial property operations
throughout Europe, controlling over #4.3 billion in assets under management
(AUM). Scarborough has a significant property portfolio, an interest in a
European funds management platform and an asset management and property services
business.

Teesland plc

Teesland is a UK listed pan-European fund management business with funds under
management of #3.7 billion at June 2007. Teesland manages a broad spectrum of
property investment funds in the UK and Europe across industrial, commercial,
retail and mixed use sectors.

Ancient Mariner Properties

Ancient Mariner owns a diversified portfolio of investment properties located
throughout the UK. The portfolio is expected to provide Valad with both passive
rental income and the opportunity to enhance value via the execution of active
asset management initiatives. The property portfolio is valued at approximately
#160 million.

Scarborough Development Group

Scarborough Development Group has a property development portfolio with
approximately A$1.1 billion (#460 million) across 26 projects located throughout
the UK and includes office, retail, industrial and mixed use developments.

Scarborough Continental Partners

Scarborough Continental Partners is a 50:50 joint venture between Scarborough,
and Bank of Scotland Corporate Europe, a part of HBOS Group. The joint venture
is designed to act as a property ownership warehouse vehicle, to provide seed
property portfolios for future TeeslandiOG managed funds. Scarborough
Continental Partner's focus is primarily the acquisition of properties located
in Europe, which can be combined to form the basis for future property
investment funds. SCP's current portfolio comprises 69 commercial and industrial
properties, predominately located in Germany, with a value over Euro830 million.
The majority of these assets will provide the seed assets for the TeeslandiOG
managed "German Aktiv Fund.

ScEurouro

ScEurouro is also a 50:50 joint venture between Scarborough and Bank of Scotland
Corporate Europe, a part of HBOS Group. ScEurouro's mandate is to make counter
cyclical property acquisitions in emerging markets with potentially higher
returns, such as Central and Eastern Europe. ScEurouro's focus is on acquiring
assets which require repositioning and value-add asset management.

About Valad

Superior Returns - Global Focus

Valad Property Group is a leading diversified property funds management company,
founded in 1995.

With A$6.6 billion of assets under management, Valad has achieved significant
growth since joining the Australian stock exchange in 2002 and provides
investors with superior returns across the full risk/return spectrum.

Valad's property trust invests in stable income-generating property assets while
its funds management operation includes specialist and value-adding investment
opportunities.

Pursuing a global vision for its funds management business, Valad is building on
its reputation for creating innovative investment products across key property
sectors.

Valad aspires to continue outperforming its sector peers, expanding its regional
and international operations when and if further opportunities arise.

Valad will continue to develop sophisticated fund opportunities for domestic and
international investors, providing the "value-add" that underpins the company's
name and philosophy. www.valad.com.au



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