Page last updated at 17:06 GMT, Monday, 17 November 2008

Cash woe for troubled development

Artists impression
The future of the luxury development is now uncertain

The firm behind a multi-million pound luxury housing development in Dundee has gone into administration.

Duncarse Developments were due to begin building 202 riverside apartments next month in a 40m project.

Administrators PricewaterhouseCoopers said there was uncertainty over whether 25 buyers who had paid deposits for homes would get their money back.

They said they would be writing to those affected to explain the company's current position.

In a statement, the administrators said: "We can confirm that approximately 25 deposits have already been placed against units at The Riverside development.

"Unfortunately, on closer inspection, it appears that the contracts in place are in the form of an unsecured loan against the company."

They added that a third party was now being sought to take over Duncarse projects in West Green Park in Liff and at Magdallen Yard Road.

The statement continued: "It is important to note that a key selling point of The Riverside is the fact that around 25 people have already demonstrated that they would like to purchase a property within the development, and we would seek to find a practical solution between those existing depositors and any third party who takes on the site."

Last week, Duncarse managing director Mark Wilson denied the development was in trouble after job losses.

'Third party'

Seven staff at the company's Yeaman Shore office were made redundant and phones were left unanswered.

At the time, Mr Wilson told the BBC News website that 25 buyers had legal agreements in place to buy properties on the development, due to feature apartments costing up to about 365,000.

The company's website said J Bruce Cartwright and Graham D Frost were acting as joint administrators of Duncarse Limited and Duncarse Riverside Limited to manage its affairs, business and property as its agents.

Mr Cartwright said: "The company has recently been experiencing liquidity issues and was, until earlier this week, hopeful that a third party may provide additional funds to support the business.

"This did not happen and, as a result, the directors resolved that the business be placed in administration.

"Our immediate priority now is to review all options for the company which will include a sale of the current planned developments to a third party who is better placed to progress the work.

"We are conscious that a number of individuals may have placed deposits against the purchase of a unit and we will be communicating directly to them as to their position."

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