Scottish housebuilder falls into administration with all homes unfinished

A housebuilder based in East Lothian has collapsed, leaving all its homes unfinished.

Joint administrators James Stephen and Lee Causer of BDO have released a report confirming Salo Property Services Ltd’s collapse.

The firm, established in 2020, was in the process of building a three-unit housing development on Queen’s Road, Dunbar, which was then to be sold as individual properties on the open market.

However, it was placed into administration on August 3.

Administrators said there was “no clear timeline to completion and repayment of debt” to its lenders.

A statement outlined: “Without a clear indication of the costs to complete and a timeline to completion, the lender became unwilling to allow interest to continue to accrue with no clear timeline to completion and repayment of the debt.

“Given the concerns all these matters raised, the lender took steps to place the company into administration.

“This would enable the site to be secured and for the joint administrators to undertake a full review of the company’s records and bank statements to ascertain how funds have been expended.

“On the agreed date, the director informed my staff that they would no longer be able to meet due to a family emergency, however my staff confirmed that as the initial meeting had already been delayed to allow them to return to the country, it could not be delayed further and steps would be taken to secure the site.”