X1’s Media City vehicle owes £20m to investors

The X1 Group company behind a four-tower scheme at Salford Quays collapsed into administration last month with one tower left unbuilt.

An administrators report prepared by BTG Begbies Traynor states that, at the time of its collapse, X1 Media City Limited owed more than £20m to investors who had paid deposits for flats within the unbuilt 26-storey tower. Many of the investors are based in the Middle East and Far East.

Another £2.4m is owned to contractor Vermont Construction, which was contracted to build the scheme.

It has not yet been ascertained how much is owed to the company’s three secured creditors, District and County Investments, Oakmore Investments, and Lw Sta 2.

X1 Media City was placed into administration by Gilbralter-registered owner Stoneoak Investments when it emerged that the company was in financial difficulty, according to BTG Begbies Traynor’s report.

X1 secured planning permission in 2015 for four 26-storey buildings north of The Quays and east of Media City. Towers one and two completed in 2017 and 2018 respectively. The third tower completed in 2023.

No above-ground work has taken place on the fourth and final tower and the site is now being marketed for sale in order to recoup money for creditors.

The last available accounts for the SPV are for the 12 months ended 31 October 2023 and show that X1 Media City generated £48m in sales and made a £2m pre-tax profit for the year.

The completed X1 Media City buildings feature gyms and cinema rooms as well as studio and one- and two-bed apartments.

The collapse of the Media City SPV is the second for X1 in recent weeks.

Place reported in June that X1 Manchester Waters had gone bust having delivered three of five planned apartment blocks on Pomona Island. That company had debts of £25.7m at the time of its collapse, according to administrator FRP Advisory.

Investors have set up a WhatsApp support group that those impacted can join by messaging 07977084808.