Administrator KPMG says Erinaceous Insurance Services has been sold to the company's lenders

Erinaceous' insurance division has been sold by the beleaugured property consultant's administrators.

Administrator KPMG confirmed to this afternoon that Erinaceous Insurance Services has been sold to a vehicle set up by the company’s lenders.

The price of the deal is currently unclear, but before it went into administration, Erinaceous was planning to raise more than £100m from its profitable insurance business.

Since Erinaceous went into administration yesterday, northern-based property services firm Eddisons has bought the firm’s property management, facilities management and landlord and tenant teams from Erinaceous, which went into administration this morning.

Eddisons has said the teams will continue to operate from their existing premises in London, Bristol, Birmingham, Manchester and Glasgow.

A source close to the process said that sales of other of Erinaceous’ constituent business were “progressing rapidly”, with more announcements expected within days.

Erinaceous went into administration yesterday with debts of more than £200m.