A major Dundee-based property investment firm is set to expand after securing a £40 million refinancing deal and completing a major corporate restructuring.
The new financial security for family-run James Keiller Investments (JKI), which owns and manages a portfolio of more than 90 commercial and residential properties across Tayside and Fife, has been extended by the corporate and commercial division of banking group Santander.
Company chairman Bruce Linton, who founded JKI in 1981, said the new finance package gave the business the chance to grow the scope of its operations.
He also said a commitment to the Tayside and Fife area from a major lender such as Santander sent out a powerful message to the wider investment community about opportunities within the region.
“As they (Santander) become confident in the marketplace, especially within Dundee and Fife where this portfolio is concentrated, they will want to do more here,” Mr Linton said.
“To get any investment fund or bank interested in Dundee is a big thing, and hopefully it will lead to others in future, especially given the waterfront redevelopment.”
JKI employs 15 staff directly as well as providing work for more than 80 independent tradespeople who maintain and refurbish the properties in the firm’s estate.
The company’s flagship development is 148 West Marketgait the multi-million-pound new-build property that now houses Dundee’s Grosvenor Casino and is also home to a gym, a Tesco store and a serviced apartments complex.
But its interests extend across several sectors including the student accommodation market, industrial units, warehousing, residential property and retail and trade outlets.
The new tie-up with Santander has grown out of collaboration between the two parties on a relatively small-scale commercial development in Glasgow two years ago.
Mr Linton said he was pleased the relationship had been further cemented through the new refinancing.
“The successful restructure of this substantial portfolio of assets will expand the scope of the business even further and will give certainty to employees, tenants and suppliers across a large number of businesses,” he said.
“We have developed a successful, long-term business model and are delighted to have now aligned ourselves with a banking partner with whom we work very well and who have taken the time to fully understand all aspects of our operations.
“I’m confident that we can realise strong opportunities from this latest deal, in markets we know very well.”
Nick Peet, relationship director at Santander Corporate & Commercial, said: “We are delighted to have been able to support one of Scotland’s most successful, well respected and entrepreneurial property investors in what has proved our biggest deal to date in Scotland.
“We will work hard with Bruce and the team at James Keiller Investments to help them meet and exceed their targets for growth.”