A deal has been struck which will see the construction of a long delayed 16-storey waterfront apartment scheme finally completed.
Work on Herculaneum Quay originally began back in 2007 but was halted following the economic crash with the tower’s steel frame only built up to four storeys.
Business advisory firm Quantuma has now completed a restructuring deal for the 119-apartment project, following the administration of its developer, Herculaneumco Limited, last year.
The restructuring and refinancing deal safeguards the development and transfers the long leasehold into a new special purpose vehicle controlled by the original investors – allowing them to appoint new developers to finish the project.
Completion is expected within the next 12 to 18 months.
Quantuma was appointed administrators of Herculaneumco Limited after the development company ran out of funds in 2018.
The firm worked with investors, lenders and the landlord to negotiate a sustainable deal to restructure and refinance the project.
On average, investors had placed between 50 and 80% of the sales value as a deposit in the scheme, which they had stood to lose had the development been subject to a forced sale.
Simon Campbell, joint administrator and director at Quantuma, says: “This deal has been delayed due to the complexity of drawing together the interests of the landlord, secured creditors and over 100 investors.
“Importantly, investors now have control over the development and have the prospect of achieving a fully refurbished property as originally intended.
“We should see development work recommence shortly.”