Part of MCR portfolio into receivership

Michael Hunt

MCR Property Group has put part of its portfolio into receivership after loans were called in by West Bromwich Building Society.

In a statement released today, the company said: "MCR Property Group is disappointed to report the decision by West Bromwich Building Society to appoint LPA Receivers in respect of a small portion of the Group's portfolio due to breaches in Loan to Value covenants relating to individual properties. This decision has come as a complete surprise to the Group, mindful of the position that many other property companies are faced with similar circumstances.

Each of the Group companies has been meticulous in meeting repayment obligations under the Group's facilities and it is pleasing to note that other funders are taking a more pragmatic approach. We can only surmise that this action has been taken as a result of internal considerations at West Bromwich rather than a measured view of the MCR Group's prospects.

Whilst we are firmly of the opinion that the Group's continued proactive management and continuing improvement of its assets would have been the most sensible course of action nonetheless MCR's staff will endeavour to assist the Receivers to the best of their ability."

The diverse property investor-developer is owned by Aneel Mussarat, who was listed in 114th place in the recent Estates Gazette Rich List 2009 compiled by Sunday Times Rich List author Philip Beresford and Dominic Prince.

Mussarat was one of the richest North West property developers with a fortune of £150m.

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