BusinessBusiness RecoveryCouncil-backed company calls in Deloitte administrators

Council-backed company calls in Deloitte administrators

A jointly owned property company between City of Edinburgh Council and Miller Developments calls in Deloitte administrators

DELOITTE ADMINISTRATORS have been called to a Scotland-based property company, which is responsible for one of the region’s largest business parks.

Matt Cowlishaw, Neville Kahn and John Reid, partners at Deloitte, were appointed joint administrators to New Edinburgh Limited (NEL).

NEL was formed in 1990 as a joint venture between Miller Development (part of Miller Group) and C.E.C. Holdings (a company owned by the City of Edinburgh Council).

The remaining assets of the company are a partly let 60,000 sq ft office building known as 7 Lochside View, and about 30 acres of developable land with planning permission.

However, the BBC reports that NEL owes about £18m to Lloyds Banking Group.

Cowlishaw said: “The administration appointment will have no impact on the occupiers of 7 Lochside View, which will continue to operate as normal.

“We will be appointing Scottish Widows Investment Partnership as asset manager to consider the options for the remaining assets of NEL.”

Edinburgh council leader Andrew Burns said development of properties through the business had generated about 7,000 jobs and millions of pounds in dividends for its stakeholders, including the council.

“Unfortunately, the economic climate has changed due to global factors and the demand for office developments has declined. As such, even though overall NEL has been a successful and worthwhile venture, it no longer offers sufficient benefit to justify the use of additional council funds,” he told the BBC.

 

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