DeTrafford’s £99m Wavelength goes into administration
Kroll has been appointed as administrator over the vehicle behind a 421-home development at Salford Quays after the company fell behind on its debt repayments.
The developer won planning permission in December 2019 to demolish the existing three-storey Navigation House office building on the 1.2-acre site and deliver the 26-storey Wavelength scheme.
No work has taken place since planning permission was granted and 299 of the apartments have been sold off plan.
DeTrafford put the £99m Wavelength scheme up for sale in March but no buyer was found.
Earlier this month, an investor in the project, Hong Kong-based City Gardens Limited, lodged a petition to wind the company up in a bid to recover its deposits.
Lender Whitecraig Limited, which holds a fixed charge over the site, then appointed Kroll as administrator on 17 August. Administrators will now try to find a buyer for the site.
In a statement to Place North West, joint administrators Michael Lennon and Jimmy Saunders said the development was delayed due to the impact of the Covid-19 pandemic.
“As such, the DeTrafford Wavelength, which is a special purpose vehicle, was unable to meet certain of its debt repayment commitments.
“We will shortly be commencing a sale process for the site, which is in a prime location in Salford Quays. With full planning permission, this is an opportunity to acquire a development site that will transform the area.”
The statement continued: “The joint administrators understand that 299 of the apartments had been pre-sold and are currently reviewing the financial position of the company including the NHBC guarantee provided to purchasers. The joint administrators will be contacting all creditors and investors in the scheme with further updates.”
The wider DeTrafford Group is not impacted by the administration of DeTrafford Wavelength, according to the administrators.
Gary Jackson, DeTrafford’s chief executive, told Place North West he believes all investors will be protected under the NHBC guarantee.
“This is a high-quality development that has suffered due to the economic challenges created by Covid-19 and the directors have worked non-stop on the project.
“There has been considerable liaison with investors during the previous two years to ensure that they have been updated with progress.”