Miller makes progress at ex-McInerney sites

THE administrators of collapsed housebuilder McInerney Group have said that Miller Homes has started work on nine of the ten prime sites it is developing.

A new report from joint administrators KPMG states that the only site on which Miller hasn’t yet started is Bispham Hall at Billinge, near Wigan, where it is awaiting approval on its proposal to amend its planning application. Miller

Miller Homes’ agreement will see it build out the ten sites held by Ludgate and then handle the sales. It will be paid back its own costs for building the properties and any funding expenses, and any remaining profit will be returned to administrators to pay down creditors.

Of the 719 plots across the ten sites, just 23 have been sold to date.

Of the 13 “B” sites which were not part of the agreement with Miller, the administrators said that they were progressing offers for seven and that offers for a further two were being assessed.

However, it said that it had not considered offers for the remaining four sites to be suitable.

Three of these – including Kensington Gardens at Blackburn – were sold off at auction last month. No decision has been made on the fate of the group’s other site.

Negotiations are also ongoing about five sites which were held by McInerney through joint ventures – two of which are through companies that looks after distressed property assets held by RBS. The other three are held alongside Irish developer Frank Keane.

Administrators said negotiations ranging from stake buy-outs to development agreements were continuing on all five developments – at Darwen, Hoddleston, Middlesbrough, Mirfield and Rugeley – and that an update will be provided in its next report in May.

McInerney Group was an Irish housebuilding company which was started in 1909 but it moved into the UK market ten years ago and grew rapidly through a string of acquisitions. Its Wigan-based UK arm bought companies such as Charlton Homes, Bowey Homes and Bolton-based William Hargreaves.

The group of 21 inter-linked companies owes its banking syndicate around £82m, which was secured against company assets.

Unsecured creditors owed a further £85.7m are not likely to receive any more than a token share of a £105,000 payout.