Pinnacle administrators put The Quadrant up for sale
The administrators of Pinnacle Student Developments Liverpool, which collapsed in January owing £12m to its creditors, have put its unfinished 240-bed The Quadrant development up for sale.
The apartments on Shaw Street were sold off-plan to overseas investors, but construction ground to a halt on the site following the administration of original main contractor PHD1 in April 2016, and the building still remains unfinished.
Administrators from KPMG were called in to Pinnacle Student Developments Liverpool in January, and a statement of affairs by the company’s director Carl Mills revealed the company owed buyers £11.6m, alongside £1.9m owed to another Pinnacle company, MVG Holdings.
KPMG has now instructed GVA to sell the site after assessing a number of options, but found it was “not possible” to build out the development in administration.
Joint administrator Paul Dumbell said the sale of the site would “maximise the return to creditors”.
While a sale price has not been disclosed, the statement of affairs estimates the value of the land at Shaw Street at £1.9m, while the “works undertaken” at the site are valued at £8.5m.
The company is the latest Pinnacle business to collapse owing millions to investors, following the developer behind Manchester’s Angelgate site.
Pinnacle’s SPV for that site, Pinnacle Angelgate entered administration in September last year. The £77m development was slated to include 344 apartments over two blocks, but much like The Quadrant, work ground to a halt after the collapse of PHD1.
Following the administration, Mills prepared a statement of affairs which claimed creditors were owed £29.7m. He also claimed the land at Dantzic Street had a book value of £7m, which could potentially have risen to £9m.
However the company’s administrators Moore Stephens stated they did not know how Mills had calculated the book value of the development site, or whether the £9m value of the land “was based upon any agent’s valuation”.
The site has since been bought by Far East Consortium for £5.2m.