Investors to miss out as Legacie swoops for stalled scheme
The developer has agreed to buy the 145-apartment second phase of Parliament Residence in Liverpool’s Baltic Triangle out of receivership, and plans to invest between £15m and £20m in the project.
Legacie Developments’ acquisition comes after the development, which was previously being delivered by Assetcorp and is 70% complete, fell into receivership at the end of last year, as revealed by Place North West.
LPA receiver David Currie & Co was appointed to recover a charge lodged by investor Collateral Investments from AC Parl Street 2, the special purpose vehicle set up by developer Assetcorp to deliver the project, according to a Companies House filing.
Around 140 investors in the project claim to have paid deposits of up to 60% on one-bedroom apartments valued at £120,000 and two-bedroom units valued at around £150,000.
Darren Bennett, founder of real estate consultancy DCBM, had been attempting to coordinate a recovery package for the investors to help them recover their deposits but said it had been “challenging”.
Legacie Developments, which also stepped in to complete Primesite’s stalled The Rise in partnership with Nexus Residential last year, is expected to complete the acquisition, worth around £6m, next week.
It is not clear whether investors will be able to recover their deposits, under the deal.
A spokesperson for Legacie Developments said: “We have put in a bid to rescue this development. It is currently in a dangerous condition from the damage that has been caused once the site stalled, and requires significant investment to bring it to standard.
“Our vision is to create a quality residential development on this site so that Liverpool is not left with another stalled scheme. Legacie has a track record of delivery in Liverpool and so we hope to revive this project to make it something the city can be proud of.”
The second phase of Parliament Residence comprises a stepped-height eight- and 11-storey building containing 145 one- and two-bed apartments designed by architect Falconer Chester Hall, was being built by Abodus Construction, a subsidiary of Assetcorp.
Assetcorp has already delivered the 44-apartment first phase of the scheme, which sold out ahead of completion in February 2018. This phase was built by Goodwin Construction and project managed by consultant Avison Young.
The project team for Parliament Residence also included M&E Abacus; cladding firm BAK; curtain walling contractor WDS; structural engineer Clancy; fire consultant OFR, and approved project inspector Quadrant.
I could see myself living on the upper floors facing a delightful view of Liverpool`s celebrated waterfront.
By The Liverpool Romancer
Brilliant. Let’s keep this going and get Liverpool out of the negative and into the positive resdevelopment.
By David
What will happen to my deposits, which are used to build this project after LPA sale? Will Legacie complete the leases? This is a serious issue and I hope we’re protected.
By Investor for Asset Corp for this project
This is a great lack of vigilance. Previous investors who invested here each lost hundreds of thousands of pounds and are now excluded. Legacie will make money by reselling it from scratch. Where is the victim investors’ money? Who will pay for this?
By victim
“It is not clear whether investors will be able to recover their deposits, under the deal” – sounds very alarming. So basically 145 investors paid 60% of the cost of apartments which were never delivered and now Legacie is going to “rescue” it. Rescue who? The 145 small investors who each put £90,000 of their retirement funds into a flat in Liverpool which was never delivered? Or are they rescuing AssetCorp who caused this mess in the first place?
I for one would love to hear more about how Legacie is rescuing the 145 small individual investors…..
By Richard Minney
First phase of the scheme had severe water damage due to poor workmanship and authorities closed the building!
By Luis Melo
Great to see a scheme rescued.
Legacie are a good firm, who actually deliver on all their projects. Thank God – Liverpool needs at least one developer with that type of track record!
Obviously I will want to see those who have invested not lose their deposits completely. I imagine some formula will be applied.
By Chris
That’s excellent news for the city but not that good for the investors as life savings for many eventually would be gone if new developer fails in assisting those poor individuals.
By Martin
Strange marketing process. Not widely marketed, limited people aware of the opportunity, tight disposal process…
By Mr Plough
Great location..Baltic Triangle, opposite the new quality legacy development on the corner of upper parliament street . Great views of cathedral and river
By George
I feel that articles like this do a great deal for Legacie’s public profile but draw precious little attention to the plight of the investors who bankrolled much of the development and now stand to be cut out of the picture altogether. This is grossly unjust and should be a cautionary tale to the hundreds of potential investors around the world who might be considering taking a similar step into the bear pit that is the British off-plan property market.
By Ian cull
Good for Liverpool and the new developer, Legacie, who are set to make substantial profits at the expense of the original investors who are each set to lose between £70,000 and £100,000 each. There is a general misconception that many investors in UK off-plan developments are from China and the Far East. This is certainly not the case here and many of us are set to lose a substantial part of our retirements funds. It is time the law was changed in the UK to put a stop to what is becoming much too commonplace.
By Ian Brindley
Given the incidents of so many failed development schemes in the City, surely the authorities should be doing more to investigate and implement protection for investors who are contributing to the wealth of the city etc.
The pattern we are here is disturbing and ultimately not enhancing the reputation of the city!
By SJ
As I have invested in two 2-bedroom apartments in this development I am extremely disappointed that us so called ‘investors’ are set to lose £££,£££ in this project . It would be interesting to see if the UK Government would look into these failed projects as it seems they are happening more and more. There are a lot of people who have faith in our government, let’s hope they look into this appalling situation for investors.
By An investor
Articles like this should also include the bad position that investors are facing now.
I am one of the 145 investors that have put almost all of my savings for the future of my children in this project by buying one property and now chances are I am to lose everything!
By Stefanos Stais
Good on John Morley and co at Legacie. As long as they stay clear of the usual high commission sales outlets and the local very expensive “funding partners” they will do well.
By Arny
Investors like me have deposited our life / retirement savings in this development. Real rescue would be if existing investors are allowed to complete on development on agreed price. That would give it a good name
By Investor
I’m called “investor” in this Article ,But I’m not,
I’m an individual genuine purchaser who put my life saving into my UK dream home,
I’m a UK resident & a faithful tax payer who never lost faith in the UK government protection to individuals living on this land.
To:
Legacie , Asset Corp, Liverpool council & authorities, UK government & UK community.
Please help me to recover my family life saving by completing & hand over my unit to me.
To all potential new buyers for this building units;
Walking on my 100,000 GBP deposit paid AssetCotp to build up my (2 bed room apartment) & fail to complete & walk away is just injustice.
Walking on my immediate family life saving to receive your new Liverpool apartment key is an unfair deal to me & I trust it’s not gonna be a rewarding choice to new buyers or developer.
To Place:
Please reach out to more legacy unit buyer to learn more about their loss, tears, & family pains, frustrations & loosing hopes to their future outlook.
By 2 bedroom Unit Buyer
Never ever ever buy a property that you can’t walk through the front door of! Just who are these people who stump up 60% of the purchase price before even the site hoardings have gone up…..what is that famous Latin phrase?
By Old Hall Street
Never forget: If a developer borrows capital to build a property and registers that property as a Limited Liability firm then for him that means NO liability. That was why that law was passed in the first place. If a property developer borrows your money then you are liable in case of bankruptcy and not the developer. It’s heads he wins, and tails he wins. Don’t be fooled again.
By James Hayes
Who are these people? Ordinary people who believed that the property was secured with a buyer’s charge. This was reinforced by the developer and solicitors. Charge lost priority to new loan but nobody believed the property would be sold by Receiver for the value of that loan. Money needs returning. System needs changing.
By Elf
I’ve seen my life savings disappear in front of my eyes into thin air. The buyers have paid for this in sweat and tears. The buyers feel as if blinkers were put over their eyes and then this latest sale has pulled the rug under there very feet.
Is Liverpool as a city going to stand up and fight for the small man or applaud developers that promise a dream but deliver a nightmare?
By Oppressed X buyer