Administrators to sell DeTrafford Salford Quays resi scheme
Administrators at Kroll have put a DeTrafford residential scheme, with consent for 421 homes in Salford Quays, up for sale.
Colliers has been appointed to sell the 1.2-acre Furness Quays project.
The site has planning permission to replace its existing Navigation House building with a residential-led scheme consisting of up to 27 storeys, with 4,000 sq ft of ground floor commercial space and 46 parking spaces.
Administrators at Kroll have put a DeTrafford residential scheme, with consent for 421 homes in Salford Quays, up for sale.
Colliers has been appointed to sell the 1.2-acre Furness Quays project.
The site has planning permission to replace its existing Navigation House building with a residential-led scheme consisting of up to 27 storeys, with 4,000 sq ft of ground floor commercial space and 46 parking spaces.
The development has been put up for sale with 299 pre-committed flat buyers. The company initially instructed JLL to offer investors the opportunity to pre-purchase flats in the scheme with a 10-30% deposit.
Those investors are owed £10.8m in deposits, according to an administrators’ report filed on Companies House.
Lender Whitecraigs appointed Kroll as administrators to DeTrafford’s Wavelength special purpose vehicle in August last year.
The administrators’ report noted that DeTrafford struggled to secure funding to commence the development, since it was hit by trading losses during the pandemic. Kroll’s report also pointed to contractors entering administration, OSA design faults, additional interest costs, a Brexit-driven sale slowdown and staff costs.
Following those issues, agents were mandated to sell the site but no formal offers were received. However, the report noted that “interest remains” in the site.
The administrators also said it may require additional third-party funding to preserve the planning permission.
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