Scotland business

Property firm City Site Estates in administration

A Glasgow-based property investment and development company which employs more than 40 people has been placed into receivership.

City Site Estates has a multi-million pound portfolio and owns commercial premises in Glasgow and London.

One of the group's firms, Saltire Leisure Ltd, owns the the Holiday Inn Express hotel in Dundee.

Directors said they were forced to re-evaluate their longer term strategy due to the slowdown in the property market.

In addition, several other of the group's companies have been placed in receivership or administration. These are Saltire Leisure Ltd, City Site Investments Ltd, CSE (West Regent Street) Ltd and Queensbridge Management Ltd.

Alan Brown, joint administrator and director with PwC in Scotland, said: "After discussions with the existing lenders, the decision was taken for the companies to seek protection through either a receivership or administration process.

"Our immediate priority will be to review the existing position, explore options and develop an effective strategy for the portfolio with a view to realising best value for the benefit of creditors."

City Site Estates employs 41 people and the administrators insisted it was "business as normal" for staff.

Mr Brown added: "During this process, we will work with all stakeholders and employees and would also like to reassure the existing tenants of the properties that this process will have minimal impact on them.

"This is particularly relevant to the Holiday Inn Express in Dundee, which will continue to trade during this period."

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