Residential Development, Blackpool
Moorfields were instructed to carry out a development review of a 43-unit residential apartment scheme in Blackpool, valued at £6 million, with bank debt of £5 million. The project was experiencing slow pre-sales and faced significant Section 106 liabilities amounting to £650,000, putting pressure on cash flow and viability.
Following the review, Moorfields were subsequently appointed as Administrators to take control of the project and deliver a structured exit.
Objectives
- Assess project viability and financial position through a detailed development review.
- Address pre-sale underperformance and Section 106 obligations.
- Ensure completion of final works and compliance with all statutory requirements.
- Implement a managed exit strategy to maximise recoveries for stakeholders.
Moorfields’ Actions
- Undertook a comprehensive review of project financials, construction progress, and sales performance.
- Identified key issues including delays in sales and unresolved s106 liabilities impacting lender recoveries.
- Upon appointment as Administrators, took control of the development to stabilise operations.
- Oversaw completion of outstanding works and ensured all necessary sign-offs were achieved.
- Implemented and managed an exit strategy, coordinating with agents to optimise sale values.
Results
- Final works completed and the scheme brought to market successfully.
- All statutory sign-offs obtained, enhancing saleability and value.
- Section 106 liabilities settled through managed negotiations.
- Recovery maximised for the secured lender through a structured disposal process.
