Residential Development, Reading
Moorfields were appointed as Administrators over a large-scale permitted development scheme in Reading, comprising 110 residential flats with an estimated value of £40 million. The project had encountered significant delays and financial pressures, leading to insolvency, with bank debt of £32 million owed to the secured lender.
The site was partially complete at the time of appointment, with a number of planning, design, and construction challenges requiring resolution before progress could continue.
Objectives
- Stabilise and secure the development to preserve asset value.
- Appoint a new development management team to take control of the project.
- Resolve outstanding planning and technical design matters to enable completion.
- Re-tender and appoint a new contractor to complete construction efficiently.
- Maximise recoveries through a structured sales and marketing strategy.
Moorfields’ Actions
- Immediately took control of the development and stabilised the project operations.
- Appointed a specialist development management team to oversee completion.
- Engaged with local authorities and consultants to resolve planning and design issues obstructing progress.
- Tendered for and appointed a new main contractor, ensuring robust cost control and project delivery.
- Developed and implemented a sales strategy, targeting both institutional and private investors to achieve strong recovery values.
Results
- The scheme was successfully restructured and completed to a high standard.
- Project risk was significantly reduced through improved oversight and governance.
- Value realisation maximised, securing strong returns for the secured lender.
- The development was brought to market as a prime residential investment, enhancing regeneration within the Reading area.
