Mostly small investors had ploughed almost £12m into The Quadrant in Shaw Street in the north of the city which was to comprise 240 student apartments. Tony McDonough reports
Administrators for an unfinished student accommodation development in North Liverpool which left overseas investors almost £12m out of pocket are seeking a buyer for the scheme.
Pinnacle Student Developments (Liverpool) had planned to create 240 student apartments at The Quadrant in Shaw Street using funds raised from smaller investors, the majority of whom were based overseas.
But the Manchester-registered special development vehicle ceased work on the project following the collapse of the main building contractor, PHD1 Construction.
With insufficient funds available to complete the build and with no development finance strategy available that was to the satisfaction of all stakeholders, the building has since remained unfinished.
Joint administrators from KPMG’s restructuring practice were appointed to Pinnacle Student Developments (Liverpool) in January 2018. Since that time, the administrators have assessed a range of exit options, including the potential build-out of the property.
Investors are owed £11.6m with a further £1.9m owned to another Pinnacle vehicle MVG Holdings. It is believed the value of the land at Shaw Street is £1.9m while works undertaken are valued at £8.5m.
Paul Dumbell, director at KPMG and joint administrator, said: “The ability to build-out the development in administration is not possible. In order to maximise the return to creditors, we consider the only viable option is to sell the development in its current condition.
“We will be working closely with GVA over the coming weeks to market the development for sale.”
Chris Walker from GVA’s Restructuring Solutions team, added: “Liverpool’s private student accommodation sector has enjoyed steady, positive growth over recent years and sentiment in the sector remains strong.
“The Quadrant offers an exciting opportunity to create value through delivery of the existing permitted scheme to fulfil its potential or through exploration of alternative uses and further development on site.
“We anticipate a good level of interest in the property and are confident of delivering a successful outcome for the creditors.”
Interested parties are advised to contact Sholom Cohen at GVA on 0161 956 4198 or email@example.com