It is understood that Bank of Scotland, the main lender to Silverburn and now part of Lloyds Banking Group, called in accountants Deloitte to
act as receiver, as Green’s empire appears to be continuing to crumble.
Deloitte and parent company subsidiary Retail Property Holdings – Silverburn’s immediate owner - have now hired commercial real estate broker Jones Lang Lasalle to find a buyer for the multimillion-pound shopping complex near Pollok, which is home to 95 shops and 14 restaurants.
Silverburn, which was opened in October 2007 and at the time valued at £350m, is expected to receive offers between £200m and £250m as the economic slump continues to take its toll on the commercial property sector.
Jones Lang Lasalle did not disclose a marketing price for Silverburn - although commercial real estate prices across the UK have slipped 45% since June 2007, in the weeks just before the recession began.
It is understood that the sharp fall in property values has reduced Silverburn’s market worth to less than the debt borrowed against it, thereby spurring Lloyds call in Deloitte to act as receiver.
Earlier this year, the Herald revealed that five companies in the Green empire, including Retail Property parent Elementary Holding Company, were all put into either administration or receivership, or both, on July 19.
Under a complex structure of company subsidiaries, Silverburn, which in June announced plans to invest £20m in the third and final phase of its expansion programme, is owned by Guernsey-based Retail Property Holdings, an entity that is ultimately controlled by the Jersey tycoon.
Retail Property Holding, however, has remained outwith the administration process, according Deloitte.
The elusive entrepreneur, who is based in Jersey, was thrust into the spotlight in 2007 after it was found that a £950 personal donation to Wendy Alexander’s leadership campaign broke strict rules governing party finance.
While he was never found guilty of any wrongdoing, the episode led to the resignation of Alexander as party leader after she was found to have broken Holyrood rules on the disclosure of donations.
The episode also led to Charlie Gordon resigning as party transport spokesman.
It was Gordon who arranged the cheque from Green, whom he knew well. Planning permission for the landmark Silverburn shopping centre was also granted during Gordon’s reign as leader of Glasgow City Council.
Tax exile Green, who is also behind other major Clydeside retail parks, was listed this year in the Sunday Times Rich List, whose criterion includes business interests north of the border, as the 66th richest man in Scotland with a personal fortune estimated at around £60m.
Meanwhile, David Raven, the agent leading the sale at Jones Lang Lasalle, said: “Silverburn is the premier shopping centre within Scotland and will be highly sought after. It will be the largest lot-sized UK shopping centre to be offered in entirety to the market in 2009.”
The shopping centre is expected to be put on the market some time between the end of the month of the end of the year.
However, Jones Lang Lasalle remained sanguine about the sale price and said to date this year 12 shopping centres have sold for a total £1.1bn.
Raven added: “The proposed sale of Silverburn, together with other sales which are anticipated to close by the year-end, should enable the market to see an annual turnover of over £2bn, double the 2008 turnover. This illustrates the investor confidence returning to the market.”
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