Glasgow-based property firm has £350m portfolio
Glasgow-based property firm City Site Estates has been placed into receivership.
The investment, development and construction firm's main trading company has a multi-million pound property portfolio, including property at 123 Elderslie Street, Glasgow, and 9-10 Philpot Lane, EC3 and and 8 City Road, both in London.
City Site Estates' website puts the current portfolio value in excess of £350 million.
A number of group companies have also been placed into administration.
Saltire Leisure Limited, which owns the Holiday Inn Express hotel, Dock Street, Dundee, has been placed in administration.
City Site Investments Limited, which owns one property, Central House, at 50-58 Jamaica Street, Glasgow, has been placed in receivership.
CSE (West Regent Street) Limited, which owns the recently redeveloped ‘grade A’ office building at 2 West Regent Street, Glasgow, has been placed into administration.
And Queensbridge Management Limited, which acted as an asset manager to the City Site group, has been placed in administrative receivership.
A total of 41 people are employed by the company, which includes 25 based at the Dundee hotel.
Appointed receiver/administrator, PwC, hopes to market the entire business as a going concern.
Alan Brown, joint receiver/administrator and director with PwC in Scotland, said: “Following the well documented slowdown in the property market, the directors have re-evaluated their longer term strategy.
“After discussions with the existing lenders, the decision was taken for the companies to seek protection through either a receivership or administration process.
“Our immediate priority will be to review the existing position, explore options and develop an effective strategy for the portfolio with a view to realising best value for the benefit of creditors.
“During this process, we will work with all stakeholders and employees and would also like to reassure the existing tenants of the properties that this process will have minimal impact on them.
“This is particularly relevant to the Holiday Inn Express in Dundee, which will continue to trade during this period.”
City Site Estates has been trading since 1973 and previously traded as Louis Property Development Company (Scotia) Ltd prior to its 1981 name change.
The company listed on the London Stock Exchange in 1985.