Kevin McCabe has sold his Scarborough property group to Australian fund manager Valad Property Group for £865m.

As revealed on Property Week’s front page last Friday, McCabe, who is also chairman of Sheffield United Football Club, is selling the bulk of his vast UK and European property empire, although he will join Valad’s board.

McCabe, who founded Scarborough in 1980, said today: “We are delighted to have found a focused 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.’

The assets of Scarborough that Valad is buying are:

- Scarborough Development Group, a UK developer;

- a UK portfolio of 20 investment properties;

- 72.3% of Teesland, the pan-European property fund management company with £3.7bn under management;

- a 50% interest in Scarborough Continental Partners, a 50:50 joint venture with HBOS;

- a 50% interest in Sc€uro, also a 50:50 JV with HBOS, which focuses on emerging markets in central and eastern Europe.

Scarborough’s management personnel, which includes the Teesland IOG fund managers headed by Mickola Wilson, will remain at the enlarged group. And Ian Robertson, the recently retired managing director of corporate Banking at Bank of Scotland, will join Valad’s board. Peter Hurley, Valad’s executive director, will move to London.

The deal increases Valad’s funds under management to £7.1bn. The company will have close to 400 people across 15 countries.