A residential property fund set up by Sir Tom Hunter has gone into administration.

The fund, called Grant West Property, had assets of around £150m and was backed by debt from HBOS, now part of Lloyds Banking Group.

Fiona Taylor and Colin Dempster from Ernst & Young were appointed administrators to the fund yesterday. It owns around 11 residential blocks in Scottish cities.

Taylor said: “Both funds have proved susceptible to the effects of the property downturn.  We are currently undertaking a full review of their portfolios, but all properties within continue to be fully serviced by property manager Grant Asset Management.”