Administrators have been appointed to four subsidiary companies of UK Land & Property, including the vehicles which own the 460,000 sq ft Exchange Flags in Liverpool and buildings at Estuary Commerce Park in Speke.
Nicholas O'Reilly and Simon Thomas of Moorfields Corporate Recovery were appointed joint administrators in July to UKLP Assets, UKLP Exchange Flags, UKLP Walker House, and UK Land & Property North West, formerly UK Land & Property until September 2013.
The four companies are associated with loans from the failed Anglo Irish Bank sold to Lone Star earlier this year, which appointed the administrators.
In 2006 a joint venture between UK Land & Property and developer Pochin acquired the 160,000 sq ft Horton House at Exchange Flags from property developer Bill Davies for a reported £15m. In 2007 the joint venture completed the purchase of the Flags with the acquisition of the 300,000 sq ft Walker House wing for an undisclosed sum.
A 70,000 sq ft pre-let to the Ministry of Defence was secured in 2007 and UK Land & Property spent £15m to refurbish the site. Development funding was provided by Anglo Irish Bank.
In 2011, Pochin's settled its guarantee obligations to Anglo Irish Bank in regards to Exchange Flags at a cost of £5m. Pochin's remained a shareholder of the subsidiary companies that own the scheme, and is also a minority shareholder in UK Land & Property North West.
Anglo Irish Bank merged with the Irish Nationwide Building Society to create the Irish Bank Resolution Corporation during the recession. In 2013, the board of IBRC was replaced with KPMG and was liquidated.
Lone Star acquired the bulk of IBRC's legacy property debt in February 2014 as part of a £3.5bn loan book purchase.
UKLP Assets owned property at Estuary Commerce Park, and according to accounts to 31 May 2013 owed IBRC £34m.
In abbreviated accounts for UK Land & Property North West in 2013, the company was described as retained by IBRC to "facilitate the ongoing letting and management of the existing tenant base and to ultimately refinance or dispose of the portfolio". A secured bank loan of £310,000 against property assets was overdue and UK Land was negotiating with the lender for continued support when the bank went into liquidation.
Simon Parker, managing director of UK Land & Property, said that none of its wider North West activity would be affected. UK Land & Property is currently on site at Great Ancoats Street in Manchester with a 166-unit residential scheme known as Nuovo, in a joint venture with Sir Robert McAlpine.
UK Land & Property is based in Nations House in Liverpool.
Lone Star declined to comment.