Botany Bay owner’s property firm hits rocky shores

A COMMERCIAL property investment firm controlled by Botany Bay owner Tim Knowles has been placed into administration, with Land and Property Act (LPA) Receivers appointed to sell its portfolio of more than 20 buildings.

Proinvest LLP, whose registered offices are at the Chorley-based Canal Mill that hosts the Botany Bay retail empire, was placed into administration on July 26.

It was ultimately owned by another of Knowles’s ventures, First Investments Ltd, which is not in administration.

Joint administrator Kevin Murphy of London-based accountancy firm Chantrey Vellacott DFK confirmed that LPA receivers had been appointed to the company’s various properties, but said that that Canal Mill itself “is not subject to an LPA Receiver appointment and is not owned by Proinvest.”

The last set of accounts filed by Proinvest showed that it owned a portfolio of properties valued at more than £65.4m at its year end on January 31, 2009.

However, this value had dropped by around £3m on its previous year and it had long-term borrowings of over £76m – £67m of which was owed to its bank, Barclays.

The firm’s rental income also dropped by 35% during the year to £4.4m (2008: £6.8m) and it posted a trading loss of £1.4m.

By its year end, its liabilities outweighed its assets by £13.2m (£8.8m) and its auditors, Moore & Smalley, said the figures meant there was a “material uncertainty” that it could continue as a going concern.

Mr Knowles was contacted, but did not reply to a request for comment.