Preston student investors mobilise to safeguard deposits
Investors in the stalled Printworks development off Sizer Street have launched a “fighting fund” to pay for legal fees as they battle to save their investments.
The group of investors behind the fund are asking their peers to contribute £250 for each apartment they have paid a deposit on.
All 218 rooms within the Preston development were sold off-plan. At the time of writing, £19,500 of the £54,500 target had been raised.
The webpage set up so that investors can donate states: “We are raising money to create a fighting fund for legal and other fees from investors/UN1-holders who have paid deposits for rooms at the Printworks Preston and are facing the loss of our deposits if we cannot purchase the building for ourselves and continue its construction to completion.”
The redevelopment of Innovation House on Sizer Street was being delivered by Ladson Group.
After work stalled, Marsh Lyons was appointed by UK Bridge Loans to sell the site to recoup money owed to the lender.
The investors are now are looking into acquiring the land from the receivers to safeguard their investments.
Ladson Preston, an SPV attached to the wider Ladson Group, won planning approval for the development in 2017.
The company advertised an “assured net rental yield of 8% for three years” to investors.
“Unfortunately, due to rising costs, we could not raise further additional funding to complete the scheme,” Ladson Group director Guy Ladson told Place North West in July.
“We are currently assisting the investors in taking the scheme forward themselves.”
Ladson Preston’s financial report for the year ended 31 May 2022 showed the company had just shy of £3m in the bank, a decrease from £6.2m compared to the previous year.
The statement also showed that the company had creditors that needed to be paid £3.2m within the next 12 months.