Student accommodation group Opal goes into administration
ADMINISTRATORS have been appointed to 13 companies within the debt-laden student accommodation specialist Opal Property Group.
The business, which owes 14 lenders more than £880m, has been desperately trying to refinance for several months.
Ernst & Young has now been appointed at more than a dozen Opal businesses which own 20 properties around the country.
E&Y said in a statement the properties provide student accommodation and professional lets for 7,200 tenants in nine locations throughout the UK.
Opal has schemes in Bradford and Huddersfield.
The administrators, E&Y partners Sam Woodward, Alan Bloom and Tom Jack stress it is “business as usual” for tenants in the properties.
In addition to the properties E&Y is handling, BNP Paribas has been appointed fixed charge receiver of the property London 4, Tufnell Park in London owned by Opal Carleton Limited (OCL).
The remaining 54 Opal Group companies owning nearly 30 properties – including student accommodation in Birmingham – are not affected by these insolvencies.
A statement said: “The administrators are currently undertaking a full review of the 20 properties in the portfolio. All the properties will continue to be fully serviced by managing agents and residents will not be affected.
Woodward said, “Following the expiry of facilities, the Companies and OCL have failed to agree an ongoing funding structure with its secured lenders.
“We are keen to stress that it is business as usual for the portfolio. Tenants should be assured that any rents paid in advance will be honoured by the administrators. The managing agents will continue to operate the properties and residents should continue to enjoy the accommodation and facilities on offer.”
Opal was founded by entrepreneur Stuart Wall in the 1980s. It was one of the largest student accommodation providers in the country with more than 20,000 beds.
