Incomplete multi-phased residential development
Developed strategy to improve recovery outcomes
Residential Development Case Study - Gilmore House
10
£million
Grade II listed former hostel
1.5
£m
Recovered
20
%
Higher net receipt achieved
Challenge
We were appointed to provide LPA Receivership advice to develop a strategy to improve the recovery outcomes on a Grade II listed hostel building in London, after the owner went into administration and defaulted on their loan agreement.
The partially completed multi-phased residential development was in London. Phase 1 of the development was 75% complete; planning consent had yet to be granted for Phases 2 and 3.
How we helped
Following an assessment, the LPA team at Vail Williams recommended against selling the property immediately in its uncompleted state, as it would result in limited recovery of outstanding loans.
In light of the favourable residential market in the area, the LPA Receiver developed and agreed a strategy with the lender, to build out the scheme rather than effect an immediate disposal.
The Receivers co-ordinated the remainder of the multi-phased development over a two-year period.
The LPA Receiver and their consultants from Vail Williams and other external advisers, carried out complex negotiations with the listed building officer, dealing with outstanding sums owed to the existing contractor, architect, and insurer, whilst organising sales and lettings of individual apartments.
Results
As a result of the LPA Receivership advice given by Vail Williams, the lender was able to achieve net receipts which £1.5 million higher than if the property had been sold in its existing state.
Get in touch
If you think you may need similar support to that described here, or you would simply want to have an informal chat with a member of our team to discuss your property needs, get in touch.
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