Another DeTrafford firm enters administration
The vehicle behind the completed St George’s Gardens development in Manchester has collapsed due to “economic challenges”, according to administrator BDO.
The company is the second DeTrafford business to go into administration in recent weeks.
In August, Place North West revealed that the company behind Wavelength, DeTrafford’s proposed 421-home development at Salford Quays, had also gone into administration.
Kroll was appointed by lender Whitecraig Limited to find a buyer for the £99m scheme.
Now, lender Maslow Capital has appointed BDO as administrator over DeTrafford St Georges Gardens Ltd.
Maslow holds a fixed charge over DeTrafford St George’s Gardens, the company behind the 138-apartment project, according to Companies House.
Construction of the 11-storey block completed in late 2020 and 127 of the one- and two-bedroom apartments have been sold.
BDO confirmed that it would be seeking buyers for the remaining 11 apartments in order to recover cash for Maslow.
A spokesperson for the joint administrators said: “Due to the wider economic challenges, St Georges faced difficulties in realising the remaining unsold apartments. We will now be taking all necessary steps to maximise returns for the benefit of all creditors in accordance with our legal duties.”
Speaking to Place North West, DeTrafford managing director Gary Jackson said he was “saddened” by the appointment of the administrators at St George’s Gardens “after all of the team’s hard work through the pandemic to achieve a successful outcome for the project”.
He added: “Unfortunately a handful of clients were unable to complete [on their purchases] due to changes in their circumstances.
“DeTrafford worked with the funder to sell the remaining apartments but unfortunately it didn’t happen within a timeframe that worked for the creditors of the company. We will work with the administrators to ensure creditors are able to maximise their returns from the project wherever this is possible.”
St George’s Gardens is part of a wider masterplan being developed by DeTrafford in the Castlefield area of Manchester. Sky Gardens, a 174-apartment project, and City Gardens, providing a further 109 homes, are also complete.
Planning approval is in place for two additional blocks, Gallery Gardens and Phoenix Works, which will provide another 366 and 267 apartments respectively.