City Site Estates goes into receivership

City Site Estates, which has a multi-million pound portfolio including a number of commercial properties in Glasgow and London, has called in the receivers.

David Chubb and Alan Brown of PricewaterhouseCoopers have been appointed as joint receivers following talks with the business’ lenders.

Chubb said the slowdown in the property market had prompted City Site’s directors to re-evaluate their long-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,” he said.

“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.”

In addition, a number of fellow group companies have been placed in receivership or administration.

They are: Saltire Leisure Ltd, which has been placed in administration; City Site Investments Ltd, which has been placed in receivership; CSE (West Regent Street) Ltd, which, has been placed in administration; and group asset manager Queensbridge Management Ltd, which has been placed in administrative receivership.

City Site was formed in 1973 as a Scottish-based private investment company and traded as Louis Property Development Company (Scotia) Ltd until a change of name in 1981.

It acquired Viking Property Group in 1988 providing it with a portfolio of property in the West End of London and development properties in Milton Keynes.

The following year it acquired a portfolio of properties from Burford for £44m.