Mountgrange Capital, the property company planning Caltongate, a controversial £300m development beside Waverley station in the heart of Edinburgh’s old town, has gone into administration.

London-based Mountgrange blamed the collapse on banks – particularly HBOS – scaling back their involvement in commercial property lending. Lloyds Banking Group, which now owns HBOS, said it could not comment because of confidentiality agreements.

Financial Times