Empty student flats cause big debts
PLYMOUTH city centre’s “ghost block” of empty student flats has defects that will cost millions of pounds to put right and people owed money by its owners are therefore unlikely to get paid.
Administrators for Plymouth (Notte Street) Ltd, which built the Crescent Point double block but went out of business in late 2019, say debts of nearly £8 million are owed to creditors.
In addition, the lender which provided the cash to have the block built is unlikely to reclaim the full £33 million it is owed, because the faulty building has dipped so much in value.
Documents filed at Companies House reveal administrators at business consultants Binder Dijker Otte (BDO) aim to sell the vacant block and brought in commercial property experts Jones Lang LaSalle (JLL) to give it a thorough inspection before it could be marketed.
A BDO report said specialist consultants and surveyors carried out surveys to find out the extent of defects and what remedial work is necessary, and then work out how much it would cost to put them right. The report said it is not possible to identify the full extent of the remedial costs as a competitive tendering process would have to be carried out, but said: “We can confirm that these costs will potentially amount to several million pounds.”
The report said whether the building is sold in its current condition or after repairs are made it will still bring in “significantly less” than the £33.5 million the lender, London-based Longbow, is owed.
Crescent Point was valued at £30 million in December, 2019, but BDO said that was based on the assumption it is fully occupied at the going market rent when sold as a going concern. BDO stressed: “Vacant property is worth much less”.
The company which owns the freehold, Plymouth (Notte Street) Ltd, part of the London-based Harouni Group, went into administration in November, 2019. BDO has had the administration extended by the High Court to November, 2021, and has sent a confidential report about the firm’s affairs to the Secretary of State for Housing, Robert Jenrick.
On top of its outstanding loan, Longbow has already paid more than £2 million towards the cost of the administration and is also facing further costs including interest payments, administrators’ fees, legal bills, and payments to security companies.
Claims from unsecured creditors have poured in as well and amount to £7.85 million, but BDO said: “Regrettably, there is unlikely to be sufficient asset realisations to enable a distribution to be made to unsecured creditors.”
GRAFFITI calling to “end violence against all women” has appeared on Smeaton’s Tower in Plymouth.
It comes after Reclaim These Streets events were cancelled across the country due to fears of spreading coronavirus.
Sarah Everard, aged 33, disappeared after visiting a friend’s house in Clapham, south London on March 3. Her body was later found in woodland in Kent and police office Wayne Couzens has been charged with her kidnap and murder.
Her death has shone on a light on women’s safety and their fears of walking along at night.
Originally, a Reclaim These Streets rally raising awareness of the need to protect women was due to be held at The Messenger statue in Plymouth city centre on Saturday.
However, following discussions with police, organisers decided to pull the plug on the event because of the risk of coronavirus.
In Plymouth, the lighthouse at the Hoe was lit up on Friday in memory of Sarah Everard. By yesterday, graffiti had been daubed on the landmark, reading: “End violence against all women.”
Some commentators on social media supported the sentiment but condemned the decision of the graffiti artists to use Smeaton’s Tower for the message.
THE M5 was badly affected after a crash on Saturday in which a lorry ploughed through the central crash barrier and ended up on its side on the opposite carriageway.
Part of the motorway was closed at 7.45am on Saturday, after the incident.
Avon and Somerset Police confirmed the driver of the lorry had been taken to hospital. His injuries were not thought to be “life-changing.”
The motorway was closed fully on the northbound side between Wellington and Taunton, with one lane closed on the southbound side throughout Saturday.
Long queues of traffic built up on the motorway, which was not fully re-opened until just before 5am yesterday.
A spokesman for Highways England said on Saturday evening: “The northbound carriageway at Junction 26 has now fully re-opened. Lane Three closures will remain in place overnight in both directions (26-25) to assist with the overnight barrier repair.”
In yesterday’s update, Highways England added: “The overnight barrier repairs are now complete and all lane closures have been removed.”
LABOUR has vowed to “force” ministers to abandon a proposed 1% pay rise for NHS staff by bringing “vote after vote” on the issue in the Commons.
Shadow health secretary Jonathan Ashworth said the party would “keep fighting for what we know is right” as he put Government ministers “on notice” that the battle will be brought to Parliament.
The Government has faced a furious outcry after calling for a headline increase of just 1% in its submission this month to the NHS pay review body.
Ministers have argued that it was all that could be afforded, following the massive hit to the public finances caused by the pandemic at a time when most public-sector workers were facing a pay freeze.
Writing in The Observer, Mr Ashworth accused the Conservatives of announcing a pay cut “at the very first opportunity they had”.
He said: “This is an issue that speaks to the very heart of who we are as a country.
“We can either build a stronger, more secure and prosperous Britain, or we can go back to the same insecure society that left us with the worst death toll in Europe and the worst economic crisis of any major economy.”