Inspired’s micro-flat estate hits the market

The first assets from the beleaguered Inspired Homes estate have hit the market as agents seek to recoup funds for creditors. Two developments in Hampshire and south-east London are being sold for a combined £8.6m after the business collapsed last year. Micro-flat developer Inspired Homes fell into administration after its chief executive Martin Skinner was jailed after crashing his Porsche while under the influence of drugs. It followed a tumultuous year for the office-to-resi conversion specialist, which struggled with development delays, poor sales and rising costs, ultimately leading to losses of £12.3m in unsecured creditor claims and more than £100m in charges against its assets. Lambert Smith Hampton and Estate Office are selling the 75-bedroom Farnborough rental scheme in Hampshire (pictured) with a guide price of £5.75m. The Queensmead scheme was one of Inspired’s first forays into the build-to-rent market, with 25 refurbished maisonettes spread across 19,095 sq ft, rented from £550 a month in the town centre. The portfolio comprises shared apartments individually rented out, as opposed to Inspired’s trademark contained micro-units. It is 83% tenanted, producing £435,060 a year, with an ERV of £520,000 and a gross yield of 9.2% at full capacity. Agents soft-market tested the sale in December before launching the sale this year on behalf of asset manager Bridgefield. They will be inviting bids next week. Inspired previously tried to sell the scheme for £5.5m but failed to receive a single offer. However, the rental income has risen since then so the seller is seeking a higher price. The building has two charges against it, with Octopus owed £5.3m and BY Loans owed £380,000, according to the administrator’s report. Vandermolen Real Estate has been instructed to sell the freehold for the south east London scheme at Deptford Broadway, the developer’s most recently completed development. The Old Bakery scheme comprises 10 flats across 4,888 sq ft and is being marketed at £2.8m. The sale price reflects a potential yield of 6.5%, with an ERV of £180,000. There are four charges on the scheme from Lend Invest, which has appointed Moorfields to recoup the funds. Agents are yet to be appointed on Inspired landmark scheme Innova in Croydon, which has been taken over by second charge-holder EG Real Estate. The scheme has been valued at £48m and owes £53.3m to Bentall Green Oak, EG Real Estate and Gemini Credit Investments. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette