Developer is ‘absolutely committed’ to waterfront

PROPERTY: Debt funding change – sale prompted Unicorn subsidiaries move

A major Dundee waterfront developer remains “absolutely committed” to the city despite putting three property development companies into administration.

Tim Allan, director of the Unicorn Property Group, said problems with existing debt funding prompted his decision.

He has placed the three Unicorn special purpose vehicle (SPV) subsidiary companies – Lindores, Lindores (Hawkhill) and Lindores (Lower Dens) – into administration.

Lindores was the property development company for the DundeeOne office development at City Quay built to attract public and private-sector tenants to the £1 billion waterfront.

The Hawkhill company was engaged in projects around the city centre, and the Lower Dens firm was pursuing a hotel development at the former textile mill at East Port.

The three SPVs were funded by Allied Irish Bank (AIB), which was taken under Irish state control after the financial crash of 2009.

Mr Allan, who is also president of Dundee and Angus Chamber of Commerce, said: “Since that time AIB has been unable to support us with any Lindores development plans.

“In January, AIB sold its debt to the US-based investment management company CarVal.

“We made CarVal an offer to buy the debt but we couldn’t come to any workable agreement.

“It did not seem to me as a situation whereby any of the Lindores companies could enjoy a positive working relationship with the new lender, so we put the three SPVs into administration.”

He continued: “What we have done with the three SPVs is in no way a reflection of the waterfront or Dundee, and we remain absolutely committed to their success.

“The Dundee waterfront is an excellent investment opportunity for the right projects with the right support.

“We have tried for seven years to secure the development funding we needed through the existing bank AIB, but without success.

“After it sold its debt it was clear that we should choose another route.

“We still think these projects are worth pursuing, but with more realistic appraisal of their value.”

The Unicorn Group was now following a different strategy with property development projects in Dundee and across Scotland.

Mr Allan added: “We are still interested in the Lindores developments and remain in close touch with the administrators.”

Tim Allan, director of the Unicorn Property Group, said Dundee waterfront is an excellent investment opportunity for the right projects with the right support.