69 Student Apartments, Plymouth – Receivership
Moorfields were appointed as Receivers over a freehold block of 69 student apartments located in Plymouth. The modern, purpose-built accommodation was valued at approximately £10 million and was subject to £8 million of bank debt.
The appointment followed financial difficulties faced by the borrower amid reduced occupancy levels and cash flow challenges in the student accommodation sector.
Objectives
- Protect and maintain the asset to preserve value.
- Ensure the continued management of tenancies and property maintenance.
- Achieve a sale of the freehold to maximise recoveries for the secured lender.
- Minimise disruption to student occupants and maintain income during the process.
Moorfields’ Actions
- Took immediate control of the property and appointed managing agents to oversee day-to-day operations.
- Ensured all statutory and health and safety requirements were met to protect residents.
- Commissioned a detailed valuation and marketing strategy through specialist student housing agents.
- Marketed and negotiated the sale of the freehold, liaising closely with the lender and potential buyers to secure optimal terms.
Results
- The freehold was successfully sold, delivering a strong recovery for the secured lender.
- Occupancy levels maintained throughout the receivership period to preserve income.
- Value maximised through proactive management and targeted marketing.
- A smooth transition ensured continuity for tenants and property operators.
