Law firm Burges Salmon has been paid close to £14m by administrators to one of Castlemore’s subsidiaries.
An administrator’s report for Castlemore (Temple Quay 8), filed at Companies House this week, shows that PwC had to make the payment as part of Burges Salmon’s agreement to take 180,000 sq ft at the £250m Temple Quay development in Bristol.
It related to late delivery and non-completion, an incentive payment and contributions to fit-out works.
The law firm agreed to move to the 400,000 sq ft scheme in 2006 at a then record rent of £27.50 per sq ft. It moved in in summer 2010, several months behind schedule.
PwC added that it was also negotiating over a dispute on the 216,000 sq ft One Glass Wharf, which was bought by fund manager Aerium for £83m last March.
The report goes on to say that because of current property market conditions and the fact that many of the sites are not complete, more development and asset management work is needed before the remaining plots can be brought to market.
As a result, the administration appointment has been extended for a further three years.
A total of 15 Castlemore subsidiaries, including vehicles owning the buildings that make up Temple Quay, collapsed into administration in early 2009 with a combined debt pile of £350m.
