Unfinished Liverpool student accommodation development The Quadrant is being put up for sale after firms behind it fell into administration.
The 240-bedroom scheme was initially granted planning approval in 2012, and apartments were sold off-plan to individual investors including overseas buyers.
Manchester-registered Pinnacle Student Developments (Liverpool) Limited was a Special Purpose Vehicle used to acquire and develop the scheme on Shaw Street, however building work ceased following the administration of main building contractor PHD1 Construction Limited.
The building has since remained incomplete due to there being insufficient funds to complete the build and no development finance strategy available that was to the satisfaction of all stakeholders.
Joint administrators from KPMG’s restructuring practice were appointed to Pinnacle Student Developments (Liverpool) and have since assessed a range of exit options including the potential build-out of the property.
Paul Dumbell, director at KPMG and joint administrator, says: “The ability to build-out the development in administration is not possible. In order to maximise the return to creditors, we consider the only viable option is to sell the development in its current condition.
“We will be working closely with GVA over the coming weeks to market the development for sale.”
Agent GVA has been instructed to bring the development site to the market, with Chris Walker from the firm’s restructuring solutions team adding: “GVA is delighted to be working with the joint administrators on what is a well-positioned and prominent student accommodation scheme in Liverpool city centre. Liverpool’s private student accommodation sector has enjoyed steady, positive growth over recent years and sentiment in the sector remains strong.
“The Quadrant offers an exciting opportunity to create value through delivery of the existing permitted scheme to fulfil its potential or through exploration of alternative uses and further development on site. We anticipate a good level of interest in the property and are confident of delivering a successful outcome for the creditors.”
The sales process is expected to last for a number of weeks before parties are invited to submit final bids for consideration.