Quantuma helps rescue Bradford development project
Corporate recovery experts from Quantuma have helped complete a restructuring deal for Xchange House in Bradford. The consulting firm’s work has assisted in the safeguarding of the project to turn the city-centre building into 126 flats.
Following a busy 2018 – as a number of previously up-and-coming UK businesses have floundered amid difficult trading conditions – business advisory firm Quantuma has commenced the New Year with a flurry of further administration engagements. The business advisory firm specialises in corporate recovery and restructuring procedures, with offices in London, Southampton, Bristol, Marlow, Watford, Brighton, Birmingham, Manchester, Ringwood and Weymouth.
The firm was recently appointed the administrator for Manor House School following the private educational facility’s acrimonious closure, as well as advising on the sale of home products company Apple Panels, which traded as Apple Home Improvements, to conservatory and door supplier County Windows. Now, the business advisory firm has completed a restructuring deal for the Xchange House refurbishment project, following the administration of developer Pinnacle. Quantuma was appointed to oversee the administration after the construction company ran out of funds in 2017.
With an on-going housing crisis making the property sector in the UK unaffordable for many, homeownership among 25-33 year-olds has halved in the past 20 years, and as a result Britain could be on the verge of a housing market collapse at an incredibly vulnerable economic moment for the nation. At the same time, the continued concentration of populations into urban areas means that one in six of the homes needed in the UK’s top biggest cities have not been built yet.
In this context, the restructuring and refinancing deal to safeguard the Bradford-based Xchange House development is especially important. The deal completed at the end of February sees the project still able to work to turn the Bradford city-centre commercial building into 126 flats. The deal transfers the long leasehold into a new special purpose vehicle controlled by the original investors, allowing them to appoint new developers to complete the project, with completion expected within the next six months.
Commenting on the news, Simon Campbell, Joint Administrator and Director at Quantuma, said, “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 with the prospect of a fully-refurbished property as originally intended. Our team has worked tirelessly to rebuild the trust of all stakeholders, and I would like to thank the many professionals who came together to drive this deal through to completion. We should see development work re-start shortly.”
Niall Monks, Director of the Xchange Development Company 2018, added, “We are delighted that we have been able to deliver this complex rescue on behalf of buyers. The project has outstanding potential, and we look forward to completing the construction and welcoming residents to the building in 2019. A limited number of apartments will soon be offered for sale as well, and we feel confident that they will be in high demand.”
