Administrators have been called into Brendan Flood's Manchester-based commercial property and development group Modus Ventures.
Modus Ventures owns over 40 companies across the UK , the majority of which are in the retail property development sector.
Richard Fleming, Brian Green and Paul Dumbell from KPMG Restructuring have today been appointed joint administrators. Other than the previously announced administration appointments noted below, no other businesses that are linked to the group are currently affected by the administration.
Administration appointments that have previously been made are Trinity Walk Wakefield Limited in March 2009, and Modus Properties ( Wigan ) and Modus ( Wigan ) which own the long leasehold of the Grand Arcade Shopping Centre in Wigan , on May 18.
Brian Green, joint administrator and head of KPMG Restructuring in the North West, said:
“The group, like many companies within the property sector, has not been immune to the economic downturn and, indeed, we believe will be one of the first in a long line of commercial real estate casualties. It is a large and complex group, with many lending institutions providing funds for both completed and part-completed developments.
"The company has been in discussions with a number of parties in respect of providing funding for ongoing developments and we will work with company management to pursue this interest. We continue to gather information on the group and will provide an update as to our strategy in due course.
“Our work on the JJB CVA and the Lehman real estate portfolio in Asia has given us an insight into what we think is just the tip of the iceberg. "We predict a wave of fall outs in the commercial property market as the true value of losses becomes apparent.
"Indeed the wave of restructuring that will be required in the commercial property market could be the next big mile stone in this recession - following other landmark moments such as the fall-out from structured investment vehicles (SIVs).
"With the June quarter day fast approaching and with £43 billion of debt repayments falling due this year, we could well see a very busy period of activity.”