Kilmarnock-based housebuilder Hood Property Cardrona Limited has collapsed into administration with debts of £4.5 million, leaving a 20-home development unfinished in the Scottish Borders.
The company entered administration last year while building homes at Cardrona, near Peebles. James Stephen and Kerry Bailey of BDO were appointed as administrators. Upon their appointment, BDO staff found the site deserted and had to force entry to assess the condition of the unfinished homes and secure the premises.
Several homes already sold
Several properties had been sold before the company entered administration. However, administrators report that substantial further investment will be needed to complete the homes and finish the development. Their latest report warns of a "significant shortfall" for creditors.
The site has been placed on the market, with a sale expected in the coming weeks. The report noted, "Nobody was present at the site," and staff had to forcibly enter to inspect the unfinished homes and install new security measures.
Creditor outlook
The report shows an intercreditor agreement involving Crowd Property, Duart Investment, and Castle Fox. Only Crowd Property is expected to recover around £1.1 million from the site sale. The amounts owed to Duart Investment and Castle Fox are unknown, and administrators do not expect either to receive a return.
HM Revenue and Customs has submitted a preferential claim of £4,684, while the company owes around £300,000 to unsecured creditors. BDO has extended the administration until September to allow time for the sale to complete and remaining matters to be resolved.
For those who have already purchased homes, the future of the development remains uncertain, with no confirmation as to whether construction will continue under new ownership.
