The Courier & Advertiser (Angus and Dundee)
Buyer sought for city centre student flats
A PROMINENT block of student flats in Dundee city centre is still on the market after the company that owned the development went into administration.
The Courthouse-Apartments on Johnston Street, valued at £3.75 million, were owned by Pride Dundee Ltd, whose directors were Bruce Linton and Angus Robb.
Pride Dundee went into administration on June 9 last year, with its only asset the 121- room Courthouse Apartments furnished student accommodation block.
Administrators FTI Consulting of London took over the running of the company and put the property on the market, with Virtualets continuing as letting agents.
FTI’s six-month progress report explains that for the sales transaction a number of offers were received and pursued to the point where commercial heads of terms were agreed.
“Unfortunately, due to issues outside of the control of the administrators, the preferred offer fell away prior to the conclusion of the sale,” the report said.
FTI Consulting is trying to conclude a sale with another interested party subject to the resolution of commercial issues, but said there is no certainty the offer will progress to completion.
Their report said secured creditors were owed £2,837,362 by Pride Dundee and held security over all assets.
FTI added: “It is anticipated, following an extensive period of marketing, that secured creditors are unlikely to be repaid in full based on the value of the property.
“The directors’ estimate of the value of the property was based on the property being fully occupied.
“This was not the case prior to the administration, and during the course of the administration occupation rates have remained signif icantly below full occupancy, thus reducing the likely saleable value of the property.”
In the period from June 9 to December 8 last year the rental income from Courthouse Apartments was £184,777, and after payments amounting to £52,416 the trading surplus was £132,361.
FTI Consulting added: “A sales process is ongoing. In the meantime, the administrators continue to honour the terms of existing leases.”
Documents held at Companies House show Pride Dundee Ltd changed its name from GRL Properties Ltd on June 2 last year, seven days before it went into administration.
The company’s registered office was changed on June 3 from East Kingsway Business Centre, Mid Craigie Road, Dundee, to c/o Harper McLeod, Gordon Street, Glasgow.
On June 11, two days after going into administration, the company’s office changed again to Brodie’s LLP, Blythswood Square, Glasgow.
Bruce Linton and Angus Robb were also the directors of GRL and the two companies had Ian Stewart as company secretary.
Mr Linton heads James Keiller Investments, a major property company which manages more than 90 commercial and residential properties across Tayside and Fife.
In 2013 it announced an expansion after securing a £40m refinancing deal and completing a major corporate restructuring.
Mr Linton and Mr Robb said they did not wish to comment on the Courthouse Apartments situation as they no longer own the property. business@thecourier.co.uk