Development Securities to buy former Kemsley assets

Published 15th Oct 2010

Development Securities is in talks to buy part of Paul Kemsley’s former property empire

It is thought Argyll Ventures, a property asset manager and investor run by Gary Leigh, has teamed up with Development Securities to buy the portfolio of 14 assets across the UK.

Paul Kemsley’s Rock Investment went into administration in summer 2009 and lender Bank of Scotland, now part of Lloyds Banking Group, hired PricewaterhouseCoopers to sell his UK and US empire.

The price paid for the 14 assets is thought to be less than £50m and the deal is set to complete within weeks.

Argyll is 50% owned by Lloyds through Bank of Scotland’s Uberior Ventures.

The purchase does not include the former Burberry headquarters on London’s Haymarket which is under offer to a separate buyer.

The New York assets are also under offer to separate buyers.

Kemsley, a former vice-chairman of Tottenham Hotspur Football Club, had a £500m joint venture with lender Bank of Scotland. However, the holding companies of his property empire – Rock Investment Holdings, Rock Joint Ventures and Birchridge – were placed into administration with debts of £500m.

Kemsley, who has appeared on The Apprentice alongside Sir Alan Sugar, founded Rock in 1995 and bought US assets in 2007 and 2008.

The bank provided equity and debt to Kemsley, who owned 51% of Rock. Other investors, including Bank of Scotland, held minority stakes.

Source: ' Property Week '

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