New homes developer enters into administration

The collapse of new home builder, Kenmore property Group, saw the company go into administration last week.

Kenmore entered into administration last Thursday, after failing to meet any of its business commitments, following the collapse in new home sales, during the recent property market slump.

Kenmore, which made a loss of almost £86 million in the year to June 2008, is a co-investing, trading and development property group with projects in the UK, Europe and the Middle East.

The group reportedly manages around £1.8 billion worth of investments together with a large development pipeline.

Grant Thornton have taken control of Kenmore Property Group Limited, Kenmore Investments Limited, a number of Kenmore Capital fund companies, and two single property vehicles, Kenmore Snowhill Limited and MK Manchester Limited.

However, the remaining property investment funds owned by the group have not been made the subject of insolvency proceedings.

The Kenmore Property Group employs 50 staff across the UK with offices located in Edinburgh, London, Leeds, Bristol, Manchester, Leeds and Birmingham.

Rob Caven, partner at Grant Thornton's Recovery and Reorganisation practice, commented: “Funding has been secured from Lloyds Banking Group to enable us to continue to trade the business while we explore with the Group's stakeholders potential restructuring opportunities. While there will undoubtedly be some uncertainty at this time our plans for the continued trading of the Group should avoid any immediate disruption to the funds that are owned and/or managed by the Group. Our immediate objective is business as usual.” 
 

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