Property downturn takes another casualty
SALTAIRE-BASED company Magellan Residential has become the latest victim of the property downturn after it announced it had gone into administration.
Dan Butters and Ian Brown, based in the Leeds office of business advisory firm Deloitte, have been appointed as administrators of Magellan Residential and Magellan Residential.
Magellan Properties, which is behind the £350m Bradford Channel project, a scheme of homes, offices and bars around a new canal basin near Forster Square, is unaffected by the administration.
Yorkshire businessman Harold Robinson, deputy president of Bradford Chamber of Commerce, is a director of the company, and also of Magellan Properties.
The group mainly operates as a house builder and property developer within the Yorkshire area and employs eight staff, three of which were made redundant yesterday.
Mr Butters said that the market was extremely difficult at the moment and that the company had been affected by the lack of liquidity in the mortgage market.
He said: “The demand for the product is there the customers just do not have the credit to make purchases.”
Magellan has five ongoing development sites comprising a mixture of houses and apartments at various stages of completion.
Mr Butters said: “This appointment reflects the continued pressures facing the UK housebuilding sector. Where appropriate, the completion of building works will continue whilst purchasers are sought for the business or the sites.
“We are working with all key stakeholders to establish an ongoing strategy for the business and will minimise disruption wherever possible.”
In its last set of accounts, for the year ending May 2007, the company recorded net assets of £855,000 and profit before tax of £512,000.
Magellan Residential was established in 2001 to undertake residential developments across Yorkshire.
The group has won a number of awards including the title of Independent Developer of the Year at the Residential Property Awards 2006, Best Family Home at the Yorkshire’s Finest Property Awards 2007 for the Foster Park development and the 5 Star Daily Mail Award Best Development South Yorkshire for Anchor Point.
