Failing investment group in ‘suspicious’ rebranding

A property investment firm that has defaulted on payments to savers has attempted to rebrand itself following Telegraph Money’s exposé of its struggling finances.

The High Street Group, which has blocked investors from redeeming their money despite a guarantee of yearly access, is in the process of transferring its liabilities and renaming itself Hadrian Real Estate.

DIY savers have invested more than £50m via the company on the promise of 12pc annual returns. The £1.5bn investment group has continued to sell “loan notes” to fund its property development projects in the north of England and the Midlands, which it has claimed will generate large profits.

However, it started to default on interest payments in 2019, and in June 2021 passed an unusual stakeholder vote to block investors from redeeming their money early. This was despite a guarantee that holders of its loan notes would have access to their money in full on a yearly basis.

In a letter sent to investors stors in May the group said it had taken a £42m hit during the pandemic and asked them m to agree to waive their rights s to withdraw their cash.

Last year directors of the limited company, known as The High Street Group Limmited, set up a separate entity, ty, The High Street Group plc. lc. This company was renamed ed Hadrian Real Estate days ys after a Telegraph Money y investigation reported the company’s failings.

The High Street Group’s founder and chairman, Gary Forrest, resigned from the new entity earlier this month but has remained in charge of the original company, which has led to confusion among investors.

“We were told he had resigned but I’m still receiving investor updates signed by Gary Forrest with company brochures about Hadrian Real Estate,” one investor said.

The letter to investors written by Mr Forrest announced the rebranding and acknowledged “recent challenges” but failed to make a distinction between the new company and the original entity. However, a spokesman for Hadrian Real Estate said Mr Forrest was no longer involved in running the new company.

Mr Forrest has been listed as an “active” director of more than 60 companies, many of which have names similar to that of the rebranded company, Hadrian Real Estate. They include Hadrian’s Holdings Limited, Hadrian’s 360 Limited and Hadrian & Co Limited, according to Companies House.

A spokesman said: “Gary Forrest is no longer a director of the company. Under the change of ownership and new name, the company has been mobilised and it was formed to take on new projects.” Savers have invested more than £50m in the group’s loan notes and many have told this newspaper that they are worried they will never see their money again. It is understood that Hadrian Real Estate will take on only a handful of the loan note liabilities. However, the group could not confirm that all assets would be purchased, which means some investors could be left behind with the original company. The spokesman added: “As part of our agreement to transfer assets we have provided High Street Group Ltd with relevant funds to indemnify loan note holders.” The new company said it had estimated its net assets at £16.7m, while £25.4m of its projects have yet to be supported by a funding partner, it told investors. Dozens of investors have said they were repeatedly promised the interest due or access to their savings but have received nothing. Craig Hopkins*, 68, invested £ 150,000 of his pension into loan notes in 2018 but requested to redeem his money in November 2020. However, the due date came and went, and the promised payment never arrived, he said. Speaking about the latest restructuring, he said: “It’s totally confusing and seems suspicious. We are all sitting on our hands hoping for our money back but it’s all gone quiet. I worry it is delaying tactics.” Investors have been offered shares in the newly branded company as a gesture of goodwill. Mr Hopkins said: “These shares are worthless for now and they only give shares to those who request them.”

‘It’s totally confusing and seems suspicious. It’s all gone quiet. I worry it is delaying tactics’

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