Glasgow-based City Site Estates has gone in to receivership.

Despite a rescue agreement to recapitalise the firm having been agreed between the management and private equity firm Harwood Real Estate, an agreement with its lenders could not be achieved.

David Chubb and Alan Brown of PwC have been appointed as joint receivers.

The company is headed by Louis Goodman and has been trading since 1973.   

The main trading company owns a number of commercial properties in Glasgow and London that include 123 Elderslie Street, Glasgow; 9-10 Philpot Lane, London EC3; 3 America Square, London EC3; and 8 City Road, London EC1.

A number of fellow group companies have also been placed in receivership or administration. These are:

• Saltire Leisure Limited, which owns the Holiday Inn Express hotel, Dock Street, Dundee, has been placed in administration.
• City Site Investments Limited has been placed in receivership. It has one property, Central House, at 50-58 Jamaica Street, Glasgow.
• CSE (West Regent Street) Limited, which owns the recently redeveloped office building at 2 West Regent Street, Glasgow, has been placed in administration.
• Queensbridge Management Limited has been placed in administrative receivership. This company acted as an asset manager to the City Site group.

David Chubb, joint receiver and administrator and partner with PwC, said:

“Following the well documented slowdown in the property market, the directors have re-evaluated their longer term strategy. 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.

“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.”