Blackmore Bond receivers pick over scraps for investors
A development site in South Liverpool, linked to the collapsed Manchester-based minibond fund that left investors owed more than £40m, has been sold for £1.2m as receivers work through the web of affiliated special purpose vehicles to recover money.
An unnamed private buyer acquired the cleared site off Woolton Road in Childwall, where Blackmore once proposed 25 apartments in a five-storey block. The 600-year-old stone cottage, Maldon Lodge, that occupied the site previously was the home of TV writer Carla Lane, creator of Bread and Butterflies, in her later years before she died in 2016. The plans were approved in February 2017 despite objections from campaign groups and the cottage was demolished, but Blackmore’s development did not materialise.
Receiver Belleveue Mortlakes and agent Eddisons acted for Blackmore SPV 13, the vehicle for the Maldon Lodge development, recovering money for one of the lenders to the SPV. Lenders with charges against the property included KSEYE Capital, West One Loans, and Amicus Finance.
More than a dozen other Blackmore SPVs within the Blackmore Bond portfolio are at various stages of administration, receivership or liquidation. There are sites in Birmingham, Stevenage, Ashford and Devon.
In August, Wythenshawe-based peer-to-peer lender Assetz Capital called for receiver Duff & Phelps to be appointed over freehold land at St Augustine’s Chapel in Cheadle Heath, Stockport.
Planning consent was granted in April 2016 for nine two-bed apartments totalling 9,000 sq ft. Work started but the development stalled before completion.
Agent MBRE is now asking £1.2m for the partly complete development.
Blackmore was controlled by Phillip Nunn and Patrick McCreesh. Blackmore raised millions of pounds from public investors between 2016 and 2018, investing the funds in 11 property developments. The business collapsed in April and administrator Duff & Phelps said it expects to recoup only £5m from the property sales.
Minibonds are a controversial area of the retail investment market as they are not regulated, exposing investors to greater risk of not getting their money back if the investment fund fails.
Nunn now advertises himself as a LinkedIn sales guru, claiming to do half an hour’s work each morning and then automating his sales tactics on the professional network website throughout the rest of the day while he relaxes with his children or plays golf.