Signature Living sets out to restore assets

Liverpool-based developer Signature Living is planning to buy back the parts of the business that collapsed, by striking a deal with investors to create two new vehicles to house the properties. The developer put several hotel assets and residential developments into administration earlier this year. But according to a statement released by chief executive Lawrence Kenwright, the company has now struck a deal with investors to radically restructure the business into two newly formed companies, which will then explore funding options to buy the assets back. Kenwright also said development work had continued and that in the next six months, four new hotels will be opened. “As we all know, Covid-19 brought the hospitality and tourism industries to their knees and forced some parts of our own businesses into administration,” the statement said. But following the successful reopening of Signature Living hotels on 4 July, which hit 90% occupancy levels, talks were held with investors to refinance Signature Living Hotels. Kenwright said these talks were an “almost impossible task with the business terrain that lay before us”, but following a series of stakeholder meetings, the company has “secured a deal which protects all areas of the business and its investors”. The statement continued: “Our aim is to trade all assets until normal profitability returns – and with it normal valuations – ensuring all investors realise a positive outcome from their investment, as Signature Living carries on with its expansion.” He said that future is “now stronger than ever”. According to a report issued by administrator Duff & Phelps, Signature Living Hotel owed creditors over £113m. Over £16m was owed to its Signature Victoria Mill SPV, for the part-conversion of a six-storey Victoria Mill in Manchester into 85 apartments, and also £14m to Signature Living Residential, the vehicle for the office-to-resi conversion at 60 Old Hall Street, to provide 123 apartments across nine floors. Retail investors are owed roughly  £10m, although the administrator’s report said it “expected the final figure will [be] much higher.” To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette