Owner of 1,525-home Cavalry Barracks scheme in administration

The owner of a major west London property development promoted by housebuilder Inland Homes has gone into administration, less than a week after Inland itself said it was going to appoint administrators.

Business advisory firm Kroll said that Steve Muncaster and Rob Armstrong were appointed as joint administrators of Hounslow Property Development Limited on 28 September. Hounslow Property Development is the owner of the Cavalry Barracks development site on which Hounslow council recently approved plans by Inland Homes for 1,525 homes.

Inland Homes has been the development manager but not owner of the high-profile London regeneration site.

The firm in administration, Hounslow Property Development Ltd, was formerly owned by Inland and called Inland Developments Ltd, until it was sold to Topaz Developments Ltd in August 2020 and re-branded.

Kroll said in a statement that the 37-acre former Ministry of Defence site was one of the largest remaining undeveloped brownfield sites in London.

The news comes after Inland last week filed a notice of intention to appoint administrators weeks after breaching loan covenants from its bankers, which it is yet to secure waivers for.

Inland secured a section 106 deal for the Cavalry Barracks site in May this year, a success which was supposed to release around £20m of fees owed to the firm for its work promoting the development. It is not known if the fees have been paid.

Hounslow Property Development’s latest accounts are overdue at Companies House. In its previous published accounts, to May 2021, it listed debts of £80.6m due within one year – including £16.8m owed to Inland. Apart from the site, worth £80m, the firm listed just £13,380 of cash in the bank and a further £260 owed to it as assets.

Rob Armstrong, joint administrator, said “It is clearly a challenging time for companies operating in the real estate sector. We are assessing all the possible options related to this site and the Company as a whole.”

Annika Kisby, managing director, Kroll’s Real Estate Advisory Group: “This site is one of London’s largest remaining brownfield sites. Cavalry Barracks provides a major opportunity and is significant for a wide range of stakeholders across the capital. Kroll’s real estate team is looking forward to bringing our range of skills to maximise the realisation of the asset.”