Kuwait buys two Mountleigh sites
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Your support makes all the difference.THE KUWAITI embassy has bought two adjacent Knightsbridge properties from the receivers of Mountleigh Group, the property and Spanish retailing combine that went into receivership last May.
An embassy spokesman said: 'The Kuwait embassy in London has been looking for new premises to accommodate its additional space requirements and, following an extensive search of the West End, two adjoining properties in Knightsbridge were found to be suitable.
'The two properties were acquired from Mountleigh's receivers and, following refurbishment, the buildings will serve as the new Kuwait embassy in London.'
Speaking from the present embassy building in Queensgate, he refused to confirm how much had been paid to the receivers, KPMG Peat Marwick, but the sum is said to be about pounds 16m, less than the book value. It is also unclear whether the Kuwait Investment Office financed the purchase.
Bids for Mountleigh's Spanish retailing arm, Galerias Preciados, were due in at the end of last month.
The receivers should give more details of progress with asset disposals at a private creditors' meeting to be held next Wednesday at Canary Wharf.
Mountleigh collapsed in late May in the face of the imminent repayment of more than pounds 70m of bonds.
But its fate had been sealed in April when a deal to sell the Merry Hill shopping centre in the West Midlands for pounds 125m fell through. Mountleigh's banking agreements stipulated that it could not sell the site for less than about pounds 105m or 75 per cent of its security value.
The receivers have said that it could take years to sell Mountleigh's UK properties.
The Merry Hill shopping centre is reportedly preparing to build an extra 89,000 square feet of space despite being in the hands of the receiver. Three chain stores are said to be negotiating for space at the site. They would join seven there already.
When Mountleigh collapsed it owed banks more than pounds 400m and its bondholders a further pounds 144m, but its assets were thought to be worth no more than pounds 400m. The shares were suspended at 3p.
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