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Bank pull-out hits landmark plans | Bank pull-out hits landmark plans |
(20 minutes later) | |
Edinburgh's biggest real estate project in a decade has been put on hold after the developer went into administration. | Edinburgh's biggest real estate project in a decade has been put on hold after the developer went into administration. |
The £300m Caltongate development by Mountgrange Capital has faltered after the Bank of Scotland pulled out its financial support. | The £300m Caltongate development by Mountgrange Capital has faltered after the Bank of Scotland pulled out its financial support. |
The bank has classified its loan as a "toxic asset". | The bank has classified its loan as a "toxic asset". |
The development in the city's Old Town had attracted hundreds of objections from campaigners and heritage groups who said it did not fit with the area. | The development in the city's Old Town had attracted hundreds of objections from campaigners and heritage groups who said it did not fit with the area. |
The Caltongate plans included a luxury hotel, an office complex and 200 homes. | |
Mark Cummings, spokesperson for Mountgrange Capital, confirmed that Deloitte had been appointed administrators for the company. | |
'Change of attitude' | |
He told BBC Radio Scotland: "For people in Edinburgh, that means that our ability to make good on the Caltongate development will be impaired in the short-term certainly. | |
"Over the last four years that we've been promoting this project and since the economic difficulty kicked in last summer, nothing has changed from Mountgrange Capital's perspective - we've just published our last annual accounts which made provision for this project. | |
"But in the last two weeks a change of attitude has been forthcoming from our bankers and that has led to us having to take this action because their support has dropped away." | |
The Bank of Scotland has said it was unable to comment for reasons of confidentiality. | The Bank of Scotland has said it was unable to comment for reasons of confidentiality. |