Administrators eye March sale for stalled £94m Manchester resi
Drum Property could seal its acquisition of DeTrafford’s 336-home Gallery Gardens in Castlefield next month, subject to court approval.
Aberdeen-based Drum, which emerged as the frontrunner for the stalled Manchester scheme last year having acquired a portion of the debt, has had its offer for the plots accepted by administrators.
The offer is conditional upon the removal of 74 unilateral notices attached to the titles. A court application to do this has been filed and a hearing is scheduled of 15 March, according to the latest administration report filed by BDO on Companies House.
The report does not disclose the value of Drum’s bid but does set out likely returns for creditors of the two DeTrafford SPV’s behind the project.
While first charge holder Daiwa sold its debt to Drum – £2.7m in the form of a direct loan to facilitate the Gallery Gardens project and £22.4m by way of cross guarantees against other DeTrafford projects – other secured creditors, including Maslow Capital, owed £11m, will receive nothing.
In addition, investors who paid a combined £2.1m in deposits for flats within Gallery Gardens will also get nothing, according to the report.
Gallery Gardens was one of several DeTrafford schemes to go bust. Others include Wavelength in Salford Quays and No1 Castlefield next door to Gallery Gardens. In total, the developer’s project went to the wall owing more than £100m to creditors.
