Administration - Living Villages goes into administration

Living Villages Holdings, a low-carbon housebuilder backed by Low Carbon Accelerator (LCA), has been put into administration. The investor had committed a total of £1.15m into the business, which will not be fully written down.

Based in Shropshire, Living Villages builds eco-friendly communities of at least 25 houses. The company has offices in the midlands, the south-east and the south-west of England. LCA first invested £350,000 for a 15% stake in the business in 2007. At that point, the investor committed to invest a further £650,000 in two tranches which took its equity ownership to 25%.

AIM-listed investment fund LCA, which is managed by Low Carbon Investors, is an early-stage investor in low-carbon businesses focusing on clean energy, cleaner fuels, energy efficiency and buildings. The investor stated that despite good progress in the company's business plan, with land-bank values diminishing and bank credits lines for property developments being withdrawn it could not justify further capital investment. It said it would not support companies which are unlikely to produce a positive return for shareholders in the near to medium future, but also pointed out the innovative nature of the business.

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