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?

Bank won`t sell New Street Site ?

From todays Evening News 29 April 2009

THE massive Caltongate site is set to mothballed for a year or more after the Bank of Scotland ordered administrators not to sell the site on the cheap.

The Edinburgh-based bank is owed £73.8 million by Mountgrange Capital and is concerned that, in the current market, the site would not sell for enough to get it the money back.

Remember when the republic broke the news of Mountgrange having no cash back in September last year, of course no one believed them as they were not a PR spin doctor like Mark Cumming of Never Beaten PR or Donald whaur`s yer troosers? Anderson of the infamous pr outfit PPS Group

Wid ye credit it?

We have had a little break here in the republic from the blog as very busy, but are now back and in the mood for getting things in order. Many exciting things are happening so watch this space.

In the meantime this Thursday get yourself over to the Canongate to a
FREE PUBLIC SEMINAR
Wid ye credit it? Making sense of the global economic crisis.

• Why has this happened?
• Who are the winners and losers?
• What can we do about it?

Everyone’s welcome to attend the FREE public event and have their say after short presentations from various speakers. Everyone will get the chance to share their views, ideas and experiences. No need to book. Just turn up.

Thursday 12th March 2009 7.00pm – 9.00pm
Godfrey Thomson Hall
Moray House School of Education
just off the Canongate (through arch to St John’s Street) opposite the threatened Macrae Tenements

see more at http://egfl.net/activecitizenship/

Evening News mourns Caltongate

Caltongate: 'Mountgrange at least had an innovative plan'
This is the Evening News Comment from yesterday to accompany the devastating news that Caltongate is on the brink of collapse, see yesterdays posting.

AFTER years of consultation and compromise it is unfortunate that the Caltongate project is likely to at the very least be further delayed due to the dire circumstances in which the development company finds itself.

Love the idea or hate it, Mountgrange had at least come up with an innovative scheme to breathe new life into a derelict corner of the inner city.Such problems have already resulted in delays to other major regeneration projects at Springside on the former Fountain Brewery Site and at Shawfair, where plans to create a "new town" on the outskirts of the city have also been shelved.Elsewhere, progress at Granton and on the Waterfront is slow and the plan to develop a medical park at Little France shows little sign of progression. The commercial property market is, to say the least, difficult and it will take some time to recover.

During the lengthy period it has taken Mountgrange to obtain planning permission for its housing, leisure and business scheme its fortunes have slumped dramatically. The company has posted losses in excess of £24 million and has seen the value of the Caltongate site plummet by almost £18 million. Its auditors gloomily forecast that they are uncertain as to whether it can keep trading. But before those who fought against the scheme celebrate, they must remember that the site will eventually be developed and the principles which underpinned it will not go away.

It is understandable that in the present economic climate that banks are wary about backing companies such as Mountgrange who are involved in speculative construction projects. There is plenty unfilled office space in Edinburgh, with more becoming available soon, and not too many firms are queuing up to expand or move into new premises. Housebuilders are finding it difficult to unload even what affordable housing is being completed.

Against this background it is somewhat reassuring that the city council today has earmarked an additional £1.4m in next year's budget to help stimulate economic growth. It hopes for an outlay of almost £4m that it will attract over a hundred times that in new investment and it promises to invest more the following year should it be required.Aiming to attract such level of investment in these times may seem an ambitious target but the city must continue to aim high. Recessions don't last for ever and Edinburgh must ensure that when it is over it is in the best position to take advantage of any opportunities that might become available.

From an article at the end of last year Councils look to get their message through letterboxes more often in The Sunday Herald, the Evening News has let the City Of Edinburgh Council and Mountgrange know exactly how much they support them!
from the article -

John McLellan, editor of the Evening News, scorns the suggestion that this outlay should be increased to compensate for his paper's shortcomings.

"I am really sorry that I have caused those poor sensitive dears so much heartache. I take it as a compliment. If you actually analysed the main policies on which the council has received criticism, you would find that we supported them.



We were behind the trams, the rationalisation of schools, the Caltongate development and the decision to demolish Meadowbank stadium. "On the point of the leadership of the council, we are reflecting exactly what every civic leader says about them."