Richard Bernstein increases Sutton Harbour Holdings stake

Activist investor Richard Bernstein has taken a substantial share in a rights issue by troubled property development and management business Sutton Harbour Holdings (SUH.L).

Bernstein’s Crystal Amber fund increased its stake in the business from 8.53 million shares to 23.76 million, or 24.68%, worth £4.75 million at a share price of 20p.

Bernstein is best known for being one of the principal shareholders in beleaguered retailer JJB Sports (JJB.L) and for trying to evict Michael Grade from his chairmanship of Pinewood Studios.

Sutton Harbour has developed and regenerated much of Plymouth’s historic waterfront, but has run into difficulties in recent years as the property sector has declined, with shares down from 166p in 2007.

The company will use the capital to pay down part of approximately £21 million in borrowing and fund development of its Millbay Marina project, following the granting of planning permission last month.

The company posted a pre-tax loss of £1.33 million for the six months to September compared with £800,000 in 2010, although revenues rose from £4 million to £6.9 million.