Greater Manchester Police is still considering what action to take in response to numerous complaints from investors in Pinnacle Alliance’s stalled Angelgate scheme, while Pinnacle said it has appointed a new contractor but is yet to announce a name.
The police is deciding whether a crime has taken place after receiving more than 70 complaints from buyers, largely based in the Far East, who collectively have put £30m into the Dantzic Street and are yet to see the properties built.
A statement from Greater Manchester 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.”
This morning, Pinnacle Alliance said it had received no contact from the police.
Construction began on the 344-apartment Angelgate scheme in 2015 by contractor PHD1. Piling finished in autumn and a crane was erected but work ground to a halt later that year, and PHD1 then went bust.
Pinnacle has 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.”
The developer said last month it has reached an agreement with a new “reputable building constructor who has said they are willing to take on the build, at no extra cost to buyers. Buyers will get the flats they bought for the price that they agreed to purchase them for.” It maintains it has received no profits from the project so far and all money has been reinvested into the scheme.
However, Pinnacle is yet to confirm the name of the company, or release a new date for work to begin again on site.
According to Pinnacle, it is paying £80,000 in additional survey costs to kick-start the work, and construction will start as soon as the surveys have been finalised.
A statement from Pinnacle said: “Pinnacle are speaking to buyers on a daily basis, and welcome any questions they have.
“The situation has absolutely been very unfortunate and extremely frustrating. However, at no point has Pinnacle ever said they would walk away from the build (which would mean that buyers would lose their money); the company has fought tooth and nail to rectify the situation and we are very nearly there.”