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Sixteen months after funding a management buyout of U.K. house builder Fairview Holdings plc, private equity and venture capital company 3i Group plc has exited its investment. 3i, together with Bank of Scotland, took an 80% stake in Fairview in a deal worth pounds 375 million ($542 million) in December 2000. The two put in pounds 80 million of equity at the time of the transaction. Fairview said Monday that thanks to pounds 50 million in mezzanine debt from Bank of Scotland and an extension in financing provided by a group of four banks, it can pay that back, plus an undisclosed return on investment. Colin McHale at Dickson Minto advised Bank of Scotland; Simon Buckingham at Travers Smith Braithwaite advised Fairview. Separately, Fairview said it will establish a joint venture with Bank of Scotland to finance residential developments. Fairview is investing pounds 12.5 million into the venture and Bank of Scotland will make pounds 62.5 million available. --Nicola Hobday www.TheDeal.com