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| Developer collapse hits city plan | Developer collapse hits city plan |
| (40 minutes later) | |
| Edinburgh's biggest development project in a decade has been put on hold after the firm behind it went into administration. | |
| The £300m Caltongate development by Mountgrange Capital has faltered after the developer said the Bank of Scotland had pulled out its financial support. | The £300m Caltongate development by Mountgrange Capital has faltered after the developer said the Bank of Scotland had pulled out its financial support. |
| Mountgrange said the bank had classified its loan as a "toxic asset". | Mountgrange said the bank had classified its loan as a "toxic asset". |
| The developmnet in the city's Old Town attracted hundreds of objections from campaigners and heritage groups. | |
| The plans included a luxury hotel, an office complex and 200 homes. | The plans included a luxury hotel, an office complex and 200 homes. |
| It was the biggest project in Edinburgh since the construction of the £431m Scottish Parliament, and was expected to take up to five years to complete. | It was the biggest project in Edinburgh since the construction of the £431m Scottish Parliament, and was expected to take up to five years to complete. |
| Mark Cummings, spokesperson for Mountgrange Capital, confirmed that Deloitte had been appointed administrators for the company. | Mark Cummings, spokesperson for Mountgrange Capital, confirmed that Deloitte had been appointed administrators for the company. |
| 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. | 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. | "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." | "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." |
| Mr Cummings said Mountgrange Capital suffered a loss last year after they had to write-down the land value of the Caltongate site. | |
| He said the company had a "strong desire" to take the assets out of administration. | |
| "We have already indicated that we are likely to look at the opportunity of taking the assets that have gone into administration out of administration," he added. | |
| The development attracted the attention of Unesco last year because it would have been part of Edinburgh's World Heritage Site. | The development attracted the attention of Unesco last year because it would have been part of Edinburgh's World Heritage Site. |
| Unesco inspectors threatened to launch an inquiry into the city's World Heritage status after campaigners said the development did not fit in with the city's Old Town. | Unesco inspectors threatened to launch an inquiry into the city's World Heritage status after campaigners said the development did not fit in with the city's Old Town. |
| 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. |