Low carbon house builder goes bust
Article Date: Jan 22 2009UK-based Living Villages has been put into administration following a decision by its investors, Low Carbon Accelerator (LCA), not to bail it out.
Andrew Affleck, investment manager at LCA, says the sustainable property developer had been struggling to raise bank finance, adding, ‘This is a decisive move on our part to limit exposure to the economic downturn.’
Some £1.15 million invested by LCA in the company is to be fully written down.
In addition, LCA has made provision against Spanish developer Classical Renaissance. Its £2.5 million of investment will be written down to £750,000 and LCA will make no further investments in the company.
Affleck comments, ‘Both of these companies were extremely innovative and working to the highest environmental standards. However, we cannot ignore the fact that the building sector as a whole is suffering in the current financial climate.’
