The vehicle set up by retail developer Modus Properties to develop and hold its Grand Arcade shopping centre in
KPMG has been appointed as administrator for Modus Properties (
Peter Macfarlane, director at Modus management subsidiary Spectrum Investment Management, said Grand Arcade, a 425,000 sq ft retail scheme completed in 2007, had been the victim of “national corporate failure” within the retail sector.
He said financial difficulties at retail tenants including Stead & Simpson, Hurley, Faith and The Works – all of which have gone into administration since last year – had caused a drop in income, while problems were compounded by the imposition of empty rates taxes.
Macfarlane added: “The underlying business is good, the scheme is new and trades well with high footfall. We believe Grand Arcade has been the victim of national issues and that it will have success.”
The move to place the Wigan holding company into administration comes just weeks after another Modus development, the 520,000 sq ft Trinity Walk in Wakefield, was placed into administration following the withdrawal of funding by Anglo Irish Bank (Estates Gazette, 21 March).
