A GERMAN shopping centre bought by Quinlan Private for €170 million in 2006 has had an insolvency administrator appointed.

The Neumarkt shopping centre had gone into administration in November after the private-equity group, since renamed Avestus, missed a €9.6 million payment.

Earlier this week, Barclays Capital said Dr Jörg Nerlich has been appointed insolvency administrator over the centre after the lenders agreed terms with him for the sale of the property. Avestus declined to comment.

The loan behind the property was placed in a commercial mortgage-backed security, which is listed on the Irish Stock Exchange.

The centre is being marketed by CBRE and indicative bids have been received, the statement said, adding that heads of terms with the highest bidders are expected to be agreed in the next two weeks.

At the time of the administrator’s appointment, a source close to Avestus said they wanted to restructure the loan and had lined up fresh equity. The source blamed Barclays for the decision to appoint an administrator saying the bank had demonstrated “little commerciality or flexibility”.

“Despite being presented with a comprehensive solution agreed by all other parties that would have involved the bank getting all its capital repaid, the bank refused to engage and alternatively pursued a policy of non-engagement and taking pre-emptive steps to escalate repayment leaving the borrower no option but insolvency.”