Details of Urban Splash’s modular debts emerge
A report by Teneo, the firm presiding over the administration of the Urban Splash House group, states that the company only has cash to pay 50% of what it owes.
Documents filed with Companies House show that Urban Splash House Holdings owes £8.3m to creditors, with £7.6m of that due to Japanese joint venture partner Sekisui House UK.
Urban Splash House Holdings is owed more than £30m by interconnected companies that are also in administration. Only £4m of that is expected to be realised from debtors, according to Teneo.
At the time of its collapse earlier this year, Urban Splash shareholders and Sekisui House UK each held 48% equity. Homes England held the remaining 4%.
Teneo was appointed to manage the administration of the company after “various operational issues relating to the factory in Alfreton” resulted in the company’s collapse and 160 redundancies.
At the same time, Teneo was appointed to other companies within Urban Splash’s House group:
- Urban Splash House Investments
- Urban Splash House
- Urban Splash Modular
- Port Loop Holdings
- Port Loop Ltd
- Port Loop (Subco1)
Reports on the finances of these companies paint a complex picture of intercompany debt.
Urban Splash House, for example, owes almost £21m to creditors, according to Teneo. Of this amount, more than £15m is due to other group companies, including Urban Splash House Holdings.
House by Urban Splash specialised in the creation of modular homes. Its schemes include East Float at Wirral Waters, Port Loop in Birmingham, New Islington in Manchester and Grappenhall Woods in Warrington.
The company was established when Urban Splash acquired the modular arm of SIG for £1 in 2018. This deal included SIG’s factory in Alfreton.
The following year, Japanese modular firm Sekisui came on board, taking an initial 35% stake in the business.