Scottish property developer Elphinstone Estates and several related companies have gone into administration.
The East Renfrewshire-based firms called in administrators from KPMG due to ongoing trading losses and cash flow problems.
It is understood that administrators hope to sell the company’s portfolio of 18 sites and properties across Scotland including land at Penicuik, Newton Mearns, Stirling and Newton St Boswells.
Blair Nimmo, head of restructuring for KPMG in Scotland, said: “In common with many developers Elphinstone has experienced very challenging conditions in recent times. It has been impacted by the reduction in construction, particularly residential, activity, with demand for development sites dropping significantly with a consequent impact on land values.
“Whilst Elphinstone has continued to progress planning applications and negotiate sales with buyers, in general transactions have taken longer to complete.
“The directors have made considerable efforts to reduce the cost base with two rounds of redundancies in 2009 and 2010, which reduced the number of employees from 32 to 13. Unfortunately these cost cutting measures could not stem trading losses and cashflow pressures, which have ultimately led to Elphinstone becoming the latest developer to fall victim to the recession.
“In conjunction with the company’s directors and management, we have started to assess the development and sales prospects of each of the sites. There are several attractive sites in prime locations, and the administration provides an opportunity for a buyer to acquire quality development land assets.”
The companies which have been placed in administration are:
Elphinstone Holdings Limited
Elphinstone Estates Limited
Elphinstone Elgin Limited
Elphinstone Land Limited
Elphinstone Baillieston Limited
Elphinstone Barcapel Limited
Commodore Homes (Lanarkshire) Limited
UA Group Limited
Patterton SPV Limited
Elphinstone Halls Limited
bridget.oconnell@estatesgazette.com
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