The developer behind the stalled £77m Angelgate project has entered administration.
Pinnacle (Angelgate) Limited has had an administration order imposed on it by the High Court following legal proceedings by overseas investors.
The 344-home Anglegate development off Dantzic Street has been subject to delays and a police investigation, with work on the site stalling in 2016.
Original contractor PHD1 exited the scheme in March last year and entered administration soon after.
The developer blamed the delay on the loss of its contractor, and said that it has struggled to find a new construction company to take on the build at the original quote price as “PHD1 had significantly under-valued the build costs.”
Goodwin Construction was appointed as PHD1’s replacement in April this year.
A Pinnacle (Angelgate) Limited spokesperson said: “A single buyer has issued a petition to put the Angelgate development into administration with the Royal Courts of Justice.
“This petition has been supported by a number of other buyers. The court has ruled in favour of this petition. This is extremely disappointing for us at Pinnacle Angelgate Ltd. We have worked determinedly to get the Angelgate development over the line.
“In the last six months we have turned this situation around and found a trusted construction company to complete the build, within budget, which meant that buyers would not have had to contribute any additional funds.
“This result is therefore extremely difficult for us, however we respect the wishes of this group of buyers.
“We will endeavour to work with and help the appointed administrator in any way they require to complete the build. We wholeheartedly believe that the Angelgate development can still be delivered for buyers. ”
In a statement, Duncan Swift, lead administrator at Moore Stephens, said: “The Administrators first need to contact all investors and creditors. We will be working with the directors of Angelgate Manchester (Buyers) Limited, the security trustee company, to determine how best to achieve a recovery.
“The Administrators want to hear from all those who have invested in the Angelgate development and any developers who have an interest in seeing the development completed”.
Greater Manchester Police is also investigating whether any fraudulent activity had taken place on the project following complaints from overseas investors.
At the time, the police said: “GMP has received around 70 complaints surrounding a property investment in the city centre of Manchester.
“These complaints have been recorded as fraudulent offences and are currently being reviewed and assessed by specialist officers.
“We continue to keep the victims updated, these are complex matters which need to be looked into thoroughly before a decision is made with regards to the best course of action.”
GMP was contacted for an update.