Mountgrange Greed knows no bounds

Full Article here in Reuters

from article -

'LONDON (Reuters) - Fund manager Mountgrange spies more money-spinning opportunities in the housing market than in commercial property, where prices are rallying fast under the glare of the world's wealthiest bargain hunters.

Nick Berry, a partner at the privately owned fund manager, said sheer weight of money chasing discounted UK offices and shops was inflating values quicker than the fundamentals alone would support, pushing the firm to consider alternatives.

"There's a stronger case for optimism in the residential sector at the moment. There is an overwhelming shortage of housing, in particular affordable housing so demand is easily identified," Berry told Reuters.

"Available commercial property stock is much less abundant and when you're thinking about where demand is coming from in that sector, it's not so obvious. Unemployment is rising and that is pushing up vacancy rates too," he said.

Berry said the appeal of the residential sector was underpinned by lower construction costs and cheaper land prices, as well as a willingness on the part of some UK banks to take action on their problematic residential assets.'

Mountgrange, which was set up by veteran property entrepreneurs Martin Myers and Manish Chande, made its last acquisition in August 2008 when it bought a portfolio of retail and office properties from PRUPIM for 140 million pounds.

Berry said Mountgrange's investors -- a mix of sovereign wealth funds, European and North American fund of funds and state pension investors -- have been supportive of a decision to remain on the sidelines and placed no pressure on them to rush back into the UK property market.

"I'd say that whilst rents continue to fall and it is unclear where new occupier demand is coming from, it is difficult to argue that funds who have adopted this approach are in danger of missing out," he said.

This is the same Mountgrange (another one of the companies now in administration) that owes £18,000 n rent to the City of Edinburgh Council for the rent on the council tenancies they had cleared to make way for a 5 star hotel and luxury housing.....and owes HBOS £70million smackeroonies see BBC piece here

You couldn't make it up. Have these people no shame?

Mountgrange owes £18,000 in Rent

Mountgrange`s Manish Chande and his spin doctor Mark Cummings legging it from Edinburgh, leaving behind them debts including £18,000 in council house rent arrears....

Remember how through an FOI we in the republic found out that Mountgrange were renting the council houses see here

Caltongate failure set to free up condemned flats for rent

Full Piece here 16 May 2009

"UNDER-THREAT council houses on the Canongate are set to be reused after the collapse of the Caltongate scheme.

Developer Mountgrange Capital was meant to be meeting the cost of the rent while the flats laid empty but council chiefs today admitted they failed to collect a single penny before Mountgrange went into administration in March.

The outstanding rent is thought to be around £18,000, with officials admitting they are not sure how they will recover that money.

Council chiefs said they intend to assess the flats to see what it would take to bring the properties up to a condition fit for rent.

The nine council flats were due to be bulldozed or partially demolished as part of the Caltongate project, which was sunk when Mountgrange's bankers pulled the plug.

A further nine private flats at 227-229 Canongate have been bought up by Mountgrange over the last two years and are now in the hands of the administrator Deloitte.

Campaigners today welcomed the chance of getting people back into the empty properties, particular in light of the city's affordable housing crisis.The Macrae Tenements on the Canongate, which are lying empty and have lost the city thousands in rent

Julie Logan, spokeswoman for the Save Our Old Town campaign group, said: "We are really pleased that the council has finally seen the sense of the recommendation that we made in our Canongate project report.

"There should not be a lot to do to these flats because a lot of them have had new doors and glazing, and also modernised inside in recent years.

"It will be good to get people into these homes, even on a temporary basis, and then start to have a proper look at what can be done with the area longer-term."

City leaders are trying to find firms to take on the gap site but it is thought it could be years before work gets underway.

A council spokeswoman said, "The council is considering options for bringing the nine flats back into temporary use until the future of the Caltongate development is known.

"A number of considerations need to be taken into account including the cost of bringing these properties up to rentable condition, and the timescale in which the new development is due to begin. If this proves to be feasible and cost effective, then bringing these properties back into use is a real possibility."

She added: "One of the terms Mountgrange had provisionally agreed to was they would cover the rent loss associated with the empty Council properties.

"However, as discussions are ongoing with the administrators, we are not in a position to say how this will money will be recovered.""