Kroll tapped for DeTrafford Wavelength site sale

31 August 2022 2 min. read

A construction site at Salford Quays has been placed into administration, after its developers fell behind on debt payments. Administrators from Kroll will now look to sell on the site.

Founded in 2008, is a Cheshire-based property developer dedicated to crafting luxury homes. In 2019, the developer won planning permission in December 2019 to demolish the existing three-storey Navigation House office building, on a 1.2-acre site in the Salford Quays. It was also contracted to deliver a 26-storey scheme.

The £99 million Wavelength scheme was set to create some 421 homes, but proved too much to handle amid the pressures of the pandemic. In fact, no work has taken place since planning permission was granted – even as 299 of the apartments have been pre-sold.

Kroll tapped for DeTrafford Wavelength administration

With DeTrafford falling behind on debt repayments for the project, the developer put the site up for sale in March 2022. With no buyer found, however, City Gardens – a Hong Kong-based investor in the project – lodged a petition to wind the project up, in a bid to recover deposits it had made.

Following this, fellow lender Whitecraig – which has a fixed charge over the site – appointed Kroll as administrator in mid-August. Michael Lennon and Jimmy Saunders will now try to find a buyer for the site. Speaking to local property news site Place North West, the joint administrators explained that pandemic delays had ultimately seen DeTrafford lose control of the site.

The pair noted, “As such, the DeTrafford Wavelength, which is a special purpose vehicle, was unable to meet certain of its debt repayment commitments. We will shortly be commencing a sale process for the site, which is in a prime location in Salford Quays. With full planning permission, this is an opportunity to acquire a development site that will transform the area.”

The news sees DeTrafford Wavelength – a separate entity created by the DeTrafford Group to oversee the development – placed into administration. However, according to the administrators, the broader group is not impacted by the news.

The statement added, “The joint administrators understand that 299 of the apartments had been pre-sold and are currently reviewing the financial position of the company including the NHBC guarantee provided to purchasers. The joint administrators will be contacting all creditors and investors in the scheme with further updates.”

The downfall of DeTrafford Wavelength is the second high-profile collapse in Salford Quays in 2022. Earlier in the year, the construction arm of Fortis Group also collapsed into administration, while the firm was delivering on a 900-home housing project in Salford – appointing restructuring experts from Begbies Traynor to oversee a sale of its assets. The administrators also blamed the pandemic for the situation.