The developer has exchanged contracts on the £250m Infinity project in Liverpool and the 300-apartment The Residence in Salford after both developments fell into administration last year.
The deals between Legacie Developments and administrator David Rubin & Partners are subject to ratification by the courts.
A spokesperson for Legacie said: “Legacie has a solid track record of delivering some of the highest quality and award-winning developments in the North West in recent years. We can confirm that we have put in bids to rescue the [Residence and Infinity] schemes so that we are not left with more stalled developments.
“It would be inappropriate for us to comment on the business of the former owners of the site.”
A spokesperson for Elliot Group said: “We are pleased with the outcome. It has taken a lot of hard work and good will from all sides to reach this point. We wish the new investors well in completing these projects.”
The administrator will head to court later this month to request the Residence deal be rubber stamped.
However, a consortium of the Elliot Group scheme’s original investors is expected to oppose the deal.
Residence investors will receive a dividend as a result of the Legacie deal but will not get back their deposits in full, administrator David Rubin told Place North West.
“I am saddened that the investors didn’t make the best bid,” Rubin said. “They deserved to buy it more than anyone else.”
In Liverpool, investors had also been negotiating a deal to take ownership of the 1,000-home Infinity but talks broke down and Legacie stepped in.
It is understood that the Infinity investors have since made an improved offer for the Leeds Street site but, as the administrator has already exchanged contracts with Legacie, it will be up to the court to decide what happens to the investors’ bid.
“Whatever the court decides we will abide by and cooperate fully with everyone,” Rubin said. “We just want the court to agree on the best deal for the body of creditors as a whole.”
No date has been set for the Infinity hearing.
The back story
The Infinity and Residence projects, which have a combined GDV of more than £300m and were both designed by Falconer Chester Hall, were placed into administration following developer Elliot Lawless’s arrest as part of Operation Aloft.
Operation Aloft is an investigation into corruption relating to development and land deals within Liverpool City Council. Lawless has not been charged and denies wrongdoing. A search of his home by Merseyside Police was declared unlawful in April 2020.
The £70m Residence scheme, located within Salford’s Greengate neighbourhood, comprises a 34-storey tower and an additional 14-storey block.
Contractor Careys had completed the concrete frame for the 300-home development before the project fell into administration.
Infinity is a three-tower scheme reaching 39-storeys at its highest point. Contractor Vermont started on site in 2019 but, like Residence, work stopped in early 2020.
Legacie swoops again
Legacie is developing a track record for acquiring stalled schemes. Last year the company, headed up by managing director John Morley, bought the 145-apartment second phase of Parliament Residence in Liverpool out of receivership after the vehicle previously delivering the scheme collapsed.
In addition, a joint venture between Legacie and Nexus Residential acquired Primesite’s The Rise on the corner of Low Hill Street and West Derby Street.
The JV renamed the project Element the Quarter and work is now underway.