Another Sourced vehicle goes bust leaving Salford scheme in limbo

The company behind plans for 525 apartments on Regent Road has entered administration with only one of the five proposed blocks completed.

Regent Plaza Holdings, a company controlled by Sourced Developments, has entered administration.

Leonard Curtis has been appointed to handle the process.

Apartments within Regent Plaza were sold off-plan. It is unclear at this stage how much is owed to investors. Funders Acre Lane and Jark are both listed as charge holders over the business on Companies House.

A spokesperson for Sourced said: “We remain committed to exploring all viable options and are working closely with the administrators to achieve the best possible outcome. Our priority is to act in the best interests of all investors during this time.”

Leonard Curtis declined to comment.

There is one completed block at Regent Plaza but the building has been the source of continual complaints from residents.

Place North West has been contacted by both owner occupiers and overseas investors who are unhappy about the state of the building.

Snagging issues that have not been resolved in the two years since the building completed, broken lifts, and a general lack of maintenance are among the common concerns.

The problems in the building have led several residents to stop paying service charges.

Building manager Zenith said resumption of service charge payments would lead to improvements in the building.

In a statement to Place North West received earlier this year, Zenith said: “The repair and maintenance of Regent Plaza is funded through the collection of service charge monies as outlined through the lease obligations.

“The success of communal living is dependent on the shared understanding that each leaseholder will fulfil their obligations which includes the prompt payment of service charge monies. As with any development, if service charge monies are not received in a timely manner it can detrimentally impact the day-to-day running of a development.”

A second block, Block C, is currently in the latter stages of construction but it is understood that work has ceased. Completion of this element is at least a year behind schedule. Sourced said it plans to complete the block “in the next 60 days”.

Apartments within the other three blocks, which would be located closer to Regent Road than the completed and semi-complete scheme, have been sold off-plan.

Regent Plaza is by no means the only Sourced scheme to have met with difficulty in recent months.

Last November, the vehicle delivering a 300-home project in Liverpool filed for administration with  liabilities of more than £13m, including £3.5m owed to investors who had put down deposits on apartments. 

Sourced has also recently sold its Love Lane scheme, also in Liverpool, to Habita Group, a UAE-based firm headed up by Ian Ringwood – who has previously worked as a consultant for Sourced.