310-flat Liverpool project goes bust 

Sourced Developments’ Scholar’s Court has stalled with liabilities of £13.2m after a two-year delay getting on site saw project costs soar.

Kingsway Square Limited, the special purpose vehicle set up to deliver the four-block Liverpool project, has entered administration. Cowgills has been appointed to manage the process.

Sourced Developments acquired the Paul Street site from Caro Developments several years ago and reworked what was originally a 452-apartment proposal, reducing the number of homes to 310.

The significant reduction in homes and the cost two-year delay between acquiring the site and securing consent for the reworked scheme have made the project unviable., according to a report by Cowgills.

During the delay the scheme was in “limbo”, the report states. The cost of delivering the project increased by 30% and Sourced has “insufficient funds” to build it out. The estimated cost of the scheme is £51.2m.

Lender Invicta International FZE is owed £5.5m and Jark Security Trustee is owed £7.73. At the time of reporting, 81 investors who bought apartments off-plan are owed a total of £3.5m, according to Cowgills report. It is thought that 342 investors have invested in the scheme in total.

The site has been valued at £3m and Invicta has expressed an interest in acquiring the site “by way of a credit bid against the investment it is owed”, the report states.

Place approached Sourced for comment.