Latimer adopts Salford site after collapse of troubled developer

Clarion Housing Association’s development arm has effectively taken control of a stalled scheme at Salford Quays after Fortis defaulted on a loan Latimer had provided.

Fortis UK Holdings and Fortis Developments have been placed into liquidation, leaving behind stalled schemes and a complex web of intercompany debt.

According to a statement of affairs filed by liquidator Begbies Traynor, Fortis UK Holdings went to the wall owing Latimer £6.3m.

As part of the loan security, Latimer had been granted charges over certain Fortis group entities and assets, the document states.

One such charge was over the site of one of four buildings within Fortis Group’s 900-home residential cluster at Salford Quays.

As a result of borrower Fortis UK Holdings and guarantor Fortis Developments going into liquidation, Latimer has effectively taken control of the site – earmarked for 158 apartments – as fixed charge holder.

This revelation, outlined in documents on Companies House, could scupper attempts to sell the site and recoup cash for creditors of an SPV called Furness Quay Phase 1 Ltd, which was set up to redevelop it.

Administrators for the Furness Quay SPV are in talks with Latimer, which recently completed the 272-apartment Amplify scheme nearby, about next steps.

Latimer was contacted for comment.

Fortis UK Holdings has entered liquidation with total debts of £17.2m, while Fortis Developments owes £19.1m. The majority of these debts are owed to other connected companies, according to reports filed on Companies House.

Beaumont Morgan, Fortis Group’s construction arm, collapsed into administration in 2022 owing £12.3m to creditors.

The company was dissolved in April.