Northern Irish property tycoon Patrick Hegarty’s £500m investment and development business WG Mitchell has had a large number of its subsidiaries placed into administration.

Ernst & Young was appointed administrator to 28 of the Edinburgh and Londonderry based company’s vehicles.

The companies in administration own a number of properties also including on Charlotte Square and George Street in Edinburgh, the 200,000 sq ft Richmond shopping centre in Derry and Properties in Glasgow, Perth and Fraserburgh in Aberdeenshire.

A statement from Ernst & Young said: ‘The companies were operating in a challenging market place and have been finding it increasingly difficult to meet the significant backlog of creditors as well as ongoing debt service obligations.

‘The business model under which the companies have been operating was becoming unsustainable.’

Ernst & Young said it would continue to operate the companies whilst considering options for disposal.