McCabe rescues Modus sites from administration

Yorkshire developer Kevin McCabe's Scarborough Group International has paid £37m to acquire seven Modus developments around the country.

Modus Properties Limited and seven other Modus companies in its portfolio have been sold to the Scarborough Development Group subsidiary in a deal arranged by administrators Ernst & Young. Tom Jack and Simon Allport of Ernst & Young LLP were appointed joint administrators of 14 companies in the Modus Group in June 2009.

Jack said: "This is a significant deal to have completed, particularly given the current challenges in the property market for developers and investors.

"The sale will ensure commercial, retail and leisure schemes will now be completed in a number of key locations, including the North West and Wales."

Ernst & Young was advised by DLA Piper, led by Patrick Duffy, Tom Kelsall and Peter Somekh.

Sites sold

Company

Location

Development name

Modus Properties Limited

Rhyl, Wales

Ocean Plaza

Modus Properties (Stockport) Limited

Stockport

None

Modus Deepdale Limited

Preston

None

Modus Congleton (No.1) Limited

Congleton

The Bridestones

Modus Eastern (Boston) Limited

Boston

Merchants Quay

Modus Gregory Limited

Glossop

None

Modus Cambrian Limited

Newport, Wales

City Spires

Modus (Tower Grand) Limited

Wigan

Tower Grand – phase 3 of the Grand Arcade development

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This is good news–both commercial and residential land values have fallen to sensible prices and there are good opportunities to expand int these areas.

By PRW

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