Kenmore Property Group goes into administration owing Lloyds Banking Group £700 millionNovember 18th, 2009 | by admin
Grant Thornton has been appointed administrator of 21 companies in the Kenwood Property Group.
The Edinburgh company, who employ 50 staff in Britian, are estimated to owe Lloyds Banking Group £700 million in funds and loans. Debts owed by Kenmore are believed to be part of the £70 billion commercial property loan book Lloyds received when it took over HBOS last year. HBOS is thought to have lent the group £700 million to allow it to keep trading – this could leave the bank with huge losses following a decline of 45% in commercial property values.
In a statement Grant Thornton reported it had been appointed to Kenmore Property Group, two single property vehicles; Snowhill and MK Manchester and various Kenmore Capital fund companies. Kenmore Private Equity is also in administration while Kenmore Investments is now in receivership.
Rob Caven, partner at Grant Thornton, said; “Funding has been secured from Lloyds to enable us to continue to trade the business while we explore with the group’s stakeholders potential restructuring opportunities.”
The main shareholder of the group, John Kennedy, was estimated to be worth £105 million according to the Sunday Times’ Rich List in 2008. He was rumoured to be close to the former commercial loans chief at HBOS, Peter Cummings. One of Mr Cummings’ last moves before his departure from HBOS last December was rumoured to be a further rescue payment of £67 million to keep Kenmore afloat.
The Kenmore assets in the 21 companies now under administration are mostly office blocks and industrial properties in areas including Manchester, Leeds and Plymouth. Kenmore has a further £1.5 billion committed to schemes in the Gulf but these are believed to be on hold for the foreseeable future.