Micro-flat developer wound up
Inspired Developments, once seen as the posterchild for micro-flats, is to be wound up two years after administrators took control on behalf of creditors.
The late property entrepreneur Martin Skinner established Inspired in 2003 as a developer specialising in office-to-resi conversions, using permitted development rights to create more affordable micro-flats with an average size of 30 square metres.
But a challenging for-sale market in the wake of the Brexit vote, high costs and lender caution ultimately led to the collapse of the business.
Inspired Developments, once seen as the posterchild for micro-flats, is to be wound up two years after administrators took control on behalf of creditors.
The late property entrepreneur Martin Skinner established Inspired in 2003 as a developer specialising in office-to-resi conversions, using permitted development rights to create more affordable micro-flats with an average size of 30 square metres.
But a challenging for-sale market in the wake of the Brexit vote, high costs and lender caution ultimately led to the collapse of the business.
Two years ago, Skinner was jailed after crashing his Porsche while under the influence of drugs. His imprisonment was described as “the straw that broke the camel’s back” by a source close to the company. Skinner was issued with a bankruptcy order. He struggled with excessive drug-taking and died in May.
An initial administrator’s report from MHA MacIntyre Hudson in 2019 revealed almost £20m in unsecured creditor claims, with small capital equity investors burned by the failed business. Subsequent reports found claims to be higher.
Inspired targeted high net worth and self-certified sophisticated investors, promising yields of 12-14%, based on home sales values north of £1,000 per sq ft.
The company operated through two vehicles, Inspired Asset Management and Inspired Developments. Claims for £21.3m from some 88 creditors have been made against the first company, including £14.4m for Gemini Credit Investors. The second company has received claims from 47 creditors, totalling £3.9m, under the estimated £6.9m owed to 73 parties.
In April, MHA said dividends would be contingent on returns from property sales from Inspired Asset Management and the success of potential insurance claims for both companies.
A number of agents have sought to sell the properties, with some smaller sales agreed, but challenges around the bigger assets such as Croydon’s Innova (pictured).
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Image courtesy of Inspired Homes
