THE elder son of motor magnate Sir Peter Vardy has launched a property investment company that will form part of the Durham-based Vardy Group.

Richard Vardy, 31, who oversaw a 120-strong property portfolio worth £250m as head of property at Reg Vardy plc, will spearhead the venture.

Vardy Property Group has a substantial capital fund to draw on to invest in a mixed portfolio of land and industrial, retail, office and leisure property.

It will either acquire properties in joint venture agreements, or by providing finance for partners.

The company's focus is initially in the North-East, Yorkshire and central Scotland, for development and investment opportunities.

Richard Vardy said: "Whilst Reg Vardy plc's core business was motor retailing, we were in a continual cycle of buying and building new properties and refurbishing existing ones, so we built up an enormous amount of specialised knowledge and expertise in development and asset management.

"There were plenty of opportunities within an existing portfolio and there were many approaches from developers and funds.

"This is an exciting new business and starting from scratch is quite a different prospect."

He said once he had built up some development stock to manage, he would recruit five or six development surveyors and building consultants.

Two development surveyors are set to join in the next few weeks and there are expected to be further opportunities as the business grows.

Mr Vardy said he was looking at ways of allowing employees to acquire a share of the company.

"There's nothing more exciting than being an owner of the business and being there at the beginning of something new and exciting. If members of our team can have a share in the business we can grow it together and have a longer-term view rather than be driven by transactions," he said.

Mr Vardy started out as a chartered surveyor at Lambert Smith Hampton, in London, before moving into the family business in 2000.

Vardy Property Group will inter-link with other companies in the Vardy Group by providing property advice to Richard's younger brother Peter, who is about to launch a motor retail business.

Sir Peter Vardy has also launched Vardy Venture Capital, which is providing capital investment and professional advice to new and growing businesses.

The Vardy Group of companies are being bankrolled by the £150m Sir Peter made from selling his 28 per cent stake in Reg Vardy, the company founded by his father in 1923.

The group has moved into offices at Aykley Heads, in Durham, which will also house the Vardy Foundation, the family's charitable trust, and the Emmanuel Schools Foundation, which sponsors three city academies.