Caltongate's ex-owners in bid to buy back site

Published on Monday 25 May 2009 20:15

THE former owners of the Caltongate site in Edinburgh are to launch a bid to buy it back from administrators in a move that could revive the controversial £300 million development.

Former Mountgrange Capital directors Manish Chande and Martin Myers have raised 300 million and are keen to buy sites across the country where developers have gone bust.

It is understood that Caltongate, currently owned by Deloitte as Mountgrange Capital's administrator, is top of the list and the fund has launched "active inquiries" about a bid for the site.

However, Mr Chande and Mr Myers are believed to be growing increasingly frustrated by the delays they have faced in making their vision a reality.

Deloitte is not currently marketing the Old Town site because of concerns that it would not get the right value in the current depressed market.

If Mr Chande and Mr Myers regained control of the key Old Town site it is almost certain the development would progress in line with the existing planning consent for a five-star hotel and shops, offices and homes.

The Mountgrange Real Estate Opportunity Fund has raised the 300 million from investors including oil-rich sovereign wealth funds, endowment and pension funds and rich individuals.