Investors take over stalled Herculaneum Quay
Investors have struck a deal to complete the 16-storey project in Liverpool which stalled after its developer entered administration last year, owing £24m to creditors.
Administrators Quantuma were appointed last year at Herculaneumco, the special purpose vehicle behind the project headed by Kerry Tomlinson of Primesite. Peer-to-peer loans platform Lendy appointed Quantuma in June last year to “protect the interests of investors”, although this was challenged by Tomlinson, who said the company was “shocked” administrators had been called in.
At the time of administration, Herculaneumco owed unsecured creditors around £12m, while a further £12m was owed to Lendy.
Quantuma has now concluded a deal which transfers the long leasehold of the building to a special purpose vehicle controlled by investors, allowing the project to be finished.
Although the building is largely structurally complete, it is expected it will take 12 to 18 months to finalise building work. The 119-apartment scheme was originally due to hand over by the end of 2017.
Primesite is continuing to advise investors on the completion of the project.
The most recent administrators’ report, dated from February this year, reveals there had been “other offers” received on the development but had been rejected by Lendy as being not of “sufficient value”. A sale of the building would likely have led to investors losing their deposits, where buyers paid between 50% and 80% of the sales value.
Kerry Tomlinson of Primesite said: “This positive update is a result of nine months of work and collaboration by a consortium of original investors in the project, including ourselves. It would not have been possible without the investors’ invaluable input – they were instrumental in developing and implementing this well-thought-out plan.
“Primesite Developments will now be advising the consortium of investors on the project. We’d like to thank all of the investors for their efforts, support, and patience as together we meticulously explored the options to allow us to see construction of Herculaneum Quay through to completion.”
Apartments are still being advertised for sale via website Certa Invest.
Simon Campbell, joint administrator and director at Quantuma, said: “This deal has been delayed due to the complexity of drawing together the interests of the landlord, secured creditors and over 100 investors. Importantly, investors now have control over the development and have the prospect of achieving a fully-refurbished property as originally intended.
“Our team has worked tirelessly to rebuild the trust of all stakeholders, and I would like to thank the many professionals who came together to drive this deal through to completion. We should see development work re-commence shortly.”
Hopefully this will be the end of the trauma and disappointment the investors have had to endure, I believe some of them gave up all hope?
By on the dock
Perhaps the end for one set of investors but the just the beginning for another set of investors. The people who provided the finance for this development to be built have been royally screwed by Prime-Site Developments and yet they get the development handed back to them for them to extract profit from.
By ShockedJock
My sister and I have been in from the beginning and have nothing but positive words to speak about the Primesite team. Without their support and guidance it would not have been possible to restart the project. Primesite have not profited and will not as we have total control.
By Mrs Higham
Herculaneum Quay has retained the vast majority of its investors and buyers. It has been a true collaboration which we are all very proud of.
So our investors will ultimately receive the apartment they originally secured.
Shockedjocks comments are
By Customer Services Primesite Developments.
hopefully LENDY investors who funded millions of pounds to get this project started wil receive their capital interest back from what has been a complete shambles from these developers and other parties.
By david H
“Primesite have not profited”. Primesite has had 12m in development finance from Lendy and has has 12m in deposits from flat purchasers. 24 million then and have not profited? Have they repaid the development loan to Lendy investors? No. This is the reality, not the spin.
By John Thomas
As an update, Lendy the development finance company has now gone into administration. Despite the development loan scheduled to be partially repaid early May, no monies were received. Unless the administrator of HQ, Quantum are holding this money, then It does look like Primesite have walked away with £24m and paid precisely nothing to the Lendy investors who funded this development.
By John Thomas
Unfortunately the deal talked about in this article is now potentially void. There has been no payment made via Quantuma to Lendy – now in administration. Unless this payment is made to RSM, appointed adminstrators of Lendy then the contract to transfer ownership is null and void. This places flat owners straight back into the position of potentially losing all their money. A terrible situation for all involved.
By Kendolman
Which investors would still wish to be advised by Prime Site? And which ‘Primesite’ is Tomlinson talking about…? The Prime Site Developments whose accounts are nearly a year overdue or the newly formed Primesite Developments (Liverpool)
By In the dock
Shockedjock – I believe it has been pointed out that the main financier, Lendy, who raised the investors funds for the project, we’re the ones to blame for all of this. They apparently sent the administrators in when the project was in no danger. It’s since been noted that Lendy have now gone into administration owing over £108,000,000 to investors.
So with Lendy going out of business and the Administrators giving control back to Primesite, it leads me to believe that Primesite were actually not to blame. Any thoughts?
By Jessop
Primesite have no business being involved in development in the city or anywhere else.
What hasn’t been appreciated is the vast sums that have already disappeared from this site. It is exactly the same at Sky Building in Newcastle in Staffs. Millions missing from both.
The buyers at HQuay are VERY foolish to have Kerry Tomlinson involved any further.
Mrs Hingham, you are deluded if you think Tomlinson and the people he has behind him haven’t profited to the tune of millions.
By Mike