Following the transaction, chairman and chief executive David Sutherland will remain Tulloch's largest shareholder with a 43 per cent shareholding.
The deal represents a significant development in Tulloch's history, with Sutherland securing a major financial institution in Bank of Scotland as a shareholder to support the Group's future growth aspirations.
Established in 1925, Inverness-based Tulloch Homes Group has become one of the most experienced and respected names in the Scottish homebuilding industry. The Group operates three principal brands through its housebuilding division: Tulloch Homes, Tulloch Homes Express and Argyll Homes. Tulloch Homes Express focuses on the social housing market which is closely aligned with the current Government priority initiative to increase housing affordability in Scotland.
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In 2007, Tulloch made three major acquisitions - Castleglen Properties Ltd, Aviemore & Highland Developments Ltd and Cameron & Paterson Holdings Ltd - providing the Group with a strong landbank in the North of Scotland.
The transaction has enabled Bank of Scotland Corporate's Joint Ventures division to invest in a UK region where the market is expected to outperform the national average. The Scottish housing market outlook is still considered to be strong, having outperformed the UK market over the past four years and with Halifax forecasting 2008 House Price Inflation at 4%.
Sutherland said: "This is an excellent move for Tulloch Homes Group and I am delighted that our bankers of more than 20 years have decided to invest in our future.
"We currently have a significant landbank at current volumes of five years across Scotland and this investment by Bank of Scotland will give us the opportunity to grow our business even further."
(GK/JM)
