Joint venture schemes ‘being explored’ by Elan Homes

Michael Hunt

The commercial development of the newly formed Elan Homes – the company set up following the sale of David McLean – is still in discussion, a statement released by the firm has announced today.

Elan Homes has acquired the assets of David McLean Homes and Holdings, which also helped save 90 jobs.

The management team at Elan Homes – consisting of John Kendrick, Frank Reil, Adrian Bravington and Rob Flood – received both equity and senior debt funding from Barclays Bank to support the formation of the new firm.

Sean Finlay, development director at Elan Homes, however, has not ruled out the firm continuing with joint venture schemes being handled by David McLean Developments.

In the statement released today, he said: "We are exploring a number of opportunities relating to the joint venture schemes handled by David McLean Developments. With the new financial backing and stability of Elan Homes we are keen to progress the commercial development arm of the business and hope to announce some exciting plans in the near future."

This news could mean joint ventures with Manchester-based developer Nikal on the retail-led Altair scheme in Altrincham, and Newton-le-Willows-based Langtree, involving the redevelopment of the International Garden Festival site in Liverpool, could be revived.

In October, Nikal's managing director Nick Payne stated his company had been the lead developer of the Altair scheme and would progress it as normal.

Nikal has consent for 200,000 sq ft of fashion retail as well as 60,000 sq ft of offices, 140 flats, 40,000 sq ft of bars and restaurants, an extreme sports centre and a hotel. A permanent replacement for the town's ice rink will also be built. The Altair scheme is due for completion in 2013.

Also, last month, Langtree said it had sufficient funds to continue single-handedly with the transformation of the International Garden Festival site if necessary.

Deeside-based David McLean collapsed with debts of up to £100m in October. Bank debt of £70m was owed to Barclays Bank, Royal Bank of Scotland and Bank of Scotland Corporate.

An official Elan Homes launch campaign with re-branding of projects is planned for January 2009.

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