DeTrafford’s Gallery Gardens latest project to hit difficulties
A pair of SPVs that control one of the two proposed blocks that make up the developer’s 366-home scheme has been placed into administration.
CBRE Loan Services has appointed BDO as administrator over DeTrafford Regiment Limited and DeTrafford Gallery Gardens Block A Limited.
The lender holds fixed charges against the companies for land off Ellesmere Street and Hulme Hall Road, part of the site earmarked for Gallery Gardens.
A spokesperson for the joint administrators, said: “Due to well-publicised financial challenges, DeTrafford Gallery Gardens Block A Limited and DeTrafford (Regiment) Limited have entered an insolvency process. We are evaluating the company’s position and will take appropriate steps with a view to maximising returns for the benefit of creditors in accordance with our duties.”
Gallery Gardens, designed by JM Architects, was approved by Manchester City Council under delegated powers in May 2020. The project had previously been refused by the planning committee.
Since approval was granted, no work has taken place. However, several investors are understood to have paid deposits on apartments within the scheme.
The two SPVs become the fifth and sixth DeTrafford vehicles to collapse in recent weeks.
BDO has also been appointed as administrator over the vehicles behind St George’s Gardens, Sky Gardens, and City Gardens. These three schemes are all complete and form part of DeTrafford’s Manchester Gardens masterplan.
Together, the developments provide more than 400 homes. Administrators were appointed on the completed projects after DeTrafford fell behind on loan repayments due to being unable to sell some of the apartments.
Investors in St George’s Gardens and City Gardens are owed a combined £26m, according to adminsitrators.
Kroll was appointed as administrator over another development, Wavelength, last year. The site in Salford Quays has permission for a 400-home development but work has never started.
Investors in that scheme are estimated to be owed £11m.
DeTrafford was contacted for comment.