The firm published a statement saying that some of the properties it operates have experienced ownership problems, resulting in them being placed into administration, but that “this is completely separate from the Think Apartments operating company”.
“Following a period of significant growth under their management, the properties managed by Think experienced ownership problems in the autumn of 2013, when loans secured from Irish lenders over a decade ago to develop London aparthotels were called in by [the National Asset Management Agency] NAMA resulting in the administration of some of the property owning companies that Think operates,” the statement said.
Report to creditors
According to an official report to creditors published by Duff & Phelps in December last year, five companies were placed into administration in October 2013: Aparthotels (Bermondsey) Ltd, Aparthotels (Tower Bridge) Ltd, Mazey Properties Ltd, Tower Bridge Road Developments Ltd and Warwick Road Developments Ltd.
The report stated that the companies were wholly-owned subsidiaries of London City Group and Holdings Limited (LCGH), which is also Think’s parent company. LCGH is owned 99 per cent by Graham Harris, the sole director of both the operating company (Think) and the various property companies owning the buildings managed by Think.
Separate legal entities
Speaking to BigHospitality, Think’s managing director Jim Souter confirmed that a number of prop-cos had been placed under the administration of Duff & Phelps, but stressed that it was “a private legal matter between the Irish banking system and the owner”, and that these companies were “completely separate legal entities” from Think.
“It is not Think Apartments that has been placed into administration, in fact, Think Apartments has been an extremely successful operation company over the past 4.5 years.
“Unfortunately, Think will lose the right to operate these buildings as a result of these properties being taken into administration,” he said.
Think Apartments added in its statement that it continues to seek additional management agreements and development opportunities and will be making a further statement about their future plans within the next 14 days.