Directors at Kenmore Property Group, the developer that this week fell into the hands of administrators owing at least £700 million to Lloyds Banking Group, are planning a management buyout of parts of the group.

Rob Brook, managing director of Kenmore, which was put into administration on Thursday with £1.8 billion of assets under management, is understood to be leading an attempt to wrest control of the asset management arm. Andrew White, head of the group’s Middle Eastern arm, is also said to be in talks to buy that division.

Other senior managers are thought to be involved but John Kennedy, Kenmore’s founder and main shareholder, whose penchant for borrowing has been blamed for the group’s demise, is not believed to be included in the plans.

A buyout of the two divisions was first mooted last month, before Grant Thornton, the administrator, was called in to keep the business operating as a going concern. The success of the buyout will depend on the directors securing finance. Sources said that talks with possible backers were continuing after the collapse of 22 of the 61 subsidiaries within the group and a further two going into receivership. Many of the subsidiaries financed individual developments.

Rob Caven and Martin Ellis, partners at Grant Thornton, are examining assets with a view to a possible restructuring and sale of some properties. It is expected that Lloyds will sell the better-quality assets and manage the others until the market recovers.

HBOS renewed a £475 million loan to part of the group last November, despite evidence that Kenmore was in trouble. It also renewed a £87 million loan to the parent group and added a £67 million loan facility.

• Silverburn, a shopping centre in Glasgow which fell into Lloyds ownership after the borrower defaulted, attracted more than 40 bids from investors before the deadline last Friday. Top bids are thought to have reached £290 million.

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