Halladale also last week announced plans to launch a new fund targeted at retail investors and announced a 54% increase in pre-tax profits to £2.6 million ($4.9 million). The value of its property portfolio was up 41% to £205 million ($382.1 million), but company officials hope to boost this to £500 million ($931.9 million) over the next three years. More than three quarters of the portfolio is held in co-investment vehicles with Bank of Scotland, Kodak Pension Fund, Citibank and Carlyle Group.

"A principal objective of the group is to seek larger and more complex opportunities where our leveraged co-investment strategy allows for significant returns to be generated," says Halladale chief executive David Lockhart. "Our expansion reflects both the success of the co-investment partnership with Bank of Scotland over the past two years and the opportunities that the new portfolio brings. Those opportunities will allow our senior management to enhance value before selling them on."

"Since its inception, Halladale Ventures has been a success for both partners and has to date achieved all its objectives," observes Peter Cummings at the Bank of Scotland. "The decision to make additional funding available to the company reflects our belief in and support for Halladale's management team."