The developers for the Caltongate scheme in Edinburgh, Mountgrange Capital have been taken into administration.
A statement from the directors this morning said that the appointment of administrators would allow sufficient time to explore alternative funding options for the developments in Edinburgh (Caltongate); Linwood (Pheonix Park) and Maidstone (Springfield Park).
Caltongate was to be a £300million development project in Edinburgh Old Town between the Royal Mile and East Market Street, featuring 5 star hotel and conference centre, an arts quarter with a live music venue with capacity for 1500, a new public square, offices, and 200 new homes. However as it is probably the largest development in the Old Town’s history and would involve the demolition of two listed buildings as well as tenement flats and other buildings, it has been criticised as not being in keeping with the heritage values of the area.
“We believe that these schemes continue to have commercial merit,” said Mountgrange Capital senior partners Martin Myers and Manish Chande. “Despite our best efforts, continued funding from existing banking channels is no longer a feasible option. We are, therefore, examining other alternatives including making an offer to buy the assets out of administration and are uniquely placed to do so”.