One of Scotland's largest property development companies The Kilmartin Property Group has been taken into receivership due to the downturn in the property market.
The group, established in 1996, had offices in London, Sheffield and Edinburgh, and a £300m portfolio including industrial, office and retail properties spread across the UK.
The directors placed Kilmartin Property Group and Kilmartin Holdings into receivership, and the linked Annfield Assets Ltd into administration. Some of the group's divisions and linked firms remain in operation and have not entered the insolvency process.
PriceWaterhouseCoopers has been appointed as the administrator to the group, and Graham Frost (PwC) said that his firm would primarily review and "develop an effective strategy for the businesses."
Kilmartin's 60 projects included developing Stoneywood in Aberdeen, the Inshes in Inverness, regeneration projects with various local governments in Scotland. Other projects were being carried out in Tunbridge Wells, Kent and Sheffield Business Park.
HBOS injected £500m of loans into the firm during the property boom leaving Lloyds, the bank which rescued HBOS during the banking crisis, at risk of losing at least £200m if the assets are sold. HBOS also owns an equity stake in Kilmartin, worth 50% in 2008.
Kilmartin reported a pre-tax loss of £46.7m in 2008, and showed liabilities of £288.7m, which are due to be paid in a year.
