London property company blames banks for its collapse

London property company blames banks for its collapse



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London-based property company, Mountgrange Capital has been forced to call in administrators, blaming its collapse on banks’ unwillingness to lend on commercial property.

The firm was established nine years ago by two prolific property developers, Martin Myers and Manish Chande. The pair said in a statement that despite their best efforts, extending funding from banks such as HBOS was no longer a feasible option.

Lloyds Banking Group, which the troubled HBOS is now part of, declined to comment due to confidentiality agreements.

John Reid, joint administrator at Deloitte, told the Telegraph newspaper: “The company is a victim of the current turbulent property market. However, Mountgrange Capital’s assets still represent major development opportunities and we will be working with our advisors to maximise the return for creditors.”

One group that won’t be sorry to see the back of the property company will be the campaigners of

Edinburgh

’s Save Our Old Town. Mountgrange Capital was planning to build a controversial £300 million development called Caltongate, in the middle of

Scotland

’s historic old town.

The scheme, which aimed to build a five-star hotel, houses and shops next to Waverley Station, was bitterly opposed by heritage groups, who, following the company’s collapse, spoke of being “full of hope” for the future of the town.

 

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