MSPs’ fury at Murray’s plot of gold
Businessman’s housing project slammed
Sir David Murray’s £1billion housing estate will be built on land he salvaged from his controversial former company before it went bust with £200million bank debts.
Scottish ministers gave the former Rangers owner’s family firm the green light to proceed with the first phase of its Garden District development on Edinburgh’s greenbelt earlier this month.
The decision is likely to represent a massive financial boost for Murray, who transferred ownership of the 675- acre plot when his empire collapsed in 2014.
At the time, the multi-millionaire said the land, along with several other sites, would be difficult to market because of planning constraints.
His new firm, Murray Capital, then bought the plots for £13.9million from Murray International Holdings (MIH). It later folded, owing money to Lloyds Banking Group.
The Scottish Government’s approval for 1350 houses wi l l hugely increase the value of the area, which is now expected to be sold on to builders.
Developer Murray Estates eventually plan to construct a £1billion development of 6000 homes as wel l as a 40-acre park.
Opposition politicians have questioned the de v e lopment a nd whether ministers should have given it the go-ahead.
MSP Neil Findlay said: “Sir David Murray’s former f irm, Murray International Holdings, had a track record of controversial business dealings.
“We only need to look at its stewardship of one of Scotland’s largest football teams to see that.
“Now we have Murray Capital involved in more controversial transactions with this Garden District development.
“This is Edinburgh’s greenbelt and it should be protected rather than concreted to release millions of pounds of profit into the hands of a small number of a l ready very wealthy people. I met with David Murray’s son, David, and other MSPs representing the region to discuss the Garden District development planning application. I heard what he had to say and was very sceptical of their plans.
“What Edinburgh needs is more social and affordable homes for it citizens, not more expensive houses and apartments.” Murray Estates says the first stage of the project in west Edinburgh will see £ 450million of private sector money injected in to the Scottish economy.
It was originally rejected by local authority experts in 2016 before councillors approved it in principle.
It was then given the stamp of approval by Scottish ministers on May 1.
G r e e n s MSP A nd y Wightman said: “Murray Capital illustrates the massive f law with the current house- building model, which enriches a tiny handful of people in the UK.
“The Murray family appear to have invested very little – they got some land, they got some planning permission and they’re now selling that land.
“We’re critical of this model of house building. A builder will now have to pay a substantial amount of money for that land.
“The price of this model is ultimately paid by home buyers. They’re paying for that inflated land value that has been paid to Murray Capital because the volume house builder needs to get the money back they have paid for the plot. They get it back by building lower quality homes that are smaller and with less design life.”
An application to wind up MIH was made in January 2015 and the company was officially dissolved in March 2018.
The Murray family paid £13.9million to transfer the Garden District plot and other locations into their new investment vehicle Murray Capital in February 2014.
Companies House documents reveal Murray claimed it came after MIH had received an “unsolicited approach” from his own family. As part of the deal, he said there was potential for “additional consideration based on profits realised over a period of up to 10 years”.
Lloyds Banking Group – which received a £20billion taxpayer-funded bailout – was forced to write off MIH’s £200million debts in the wake of the 2008 financial crisis and pensioners lost benefits as a result of its demise.
A total of 330 houses in the new development – which has been given planning permission in principle – will be affordable. The development will now be subject to further detailed scrutiny from Edinburgh City Council.
There are also plans to provide a new primary school, neighbourhood centre, convenience retailing and 40-acre park.
Murray’s son David is the managing director of Murray Capital Group, the parent company of Murray Estates.
Murray Estates said: “We are pleased to have secured approval for the first phase of the Garden District development, which represents a £ 450million private sector investment in the economy and will deliver 1350 much-needed homes and supporting infrastructure in west Edinburgh.
“The plans were approved at all levels – City of Edinburgh Council, reporter’s recommendation and Scottish ministers – over a comprehensive five-year process.”