Kevin McCabe’s fight to buy Teesland took a dramatic twist this morning after his SCAMP property group initiated a deliberate campaign to devalue Teesland and force stealth shareholder Polygon Global Opportunities into talks.

SCAMP has informed Teesland’s independent board of directors that it will not renew its project and asset management contracts when they expire in August. The contracts, which represent 10% of Teesland’s total mandates, could slash the company’s £180m market value by a quarter.

SCAMP has also appointed Teesland’s senior management team, comprising Mickola Wilson, Paul Oliver, David Seddon and Marcus Shepherd, as non-executive directors.

Both audacious moves have been designed to force Polygon to declare its intentions towards Teesland. The hedge fund manager has built up a 23% stake in the takeover target, but has so far refused to submit a competing bid for the company or meet with SCAMP’s directors.

A statement from SCAMP said: ‘In the event that Polygon maintains its interest in Teesland, then this would reduce by some £45m the capital required by SCAMP to acquire Teesland and reorganise its property management interests.’

McCabe had previously offered to buy Teesland for £200m or £1.59 a share.

The news came on the same day Scarborough Continental Partners (SCP) announced it had splashed out E330m (£220m) to buy a portfolio of 26 German industrial and office properties.

The 50/50 joint venture between Scarborough Group and Bank of Scotland has bought the portfolio Berlin-based property investor BEOS off a net initial yield of about 7.25%. The acquisition brings SCP’s German portfolio to more than E720m (£480m), the majority of which have been bought using Teesland’s European platform.