Receivers appointed over Montpellier Estates portfolio
RECEIVERS have been appointed over a portfolio of properties owned by Jan Fletcher’s Montpellier Estates.
It was announced that Jon Gershinson and Louisa Brooks of Allsop LLP have been appointed as joint fixed charge receivers over land and properties owned by Montpellier Estates Ltd including its flagship City One site in Holbeck, Leeds as well as its head office, Montpellier House in Cold Bath Road, Harrogate.
In April a High Court judge awarded Leeds City Council interim costs of £2m after a court case he said “should never have been brought” by Jan Fletcher’s Montpellier Estates.
Mr Justice Supperstone made the award against Montpellier Estates (MEL) following its failed attempt to sue the council over the awarding of development rights to the £60m Leeds Arena.
In awarding the costs – which are an interim payment pending a future decision on the total amount to be paid – the judge criticised Montpellier for pursuing the deceit element of their claim in the first place.
He ordered MEL to make the interim payment within 28 days and turned down their application for an appeal on the procurement element of their failed case against Leeds City Council.
He also refused their application for a stay on payment of part of the costs pending a possible appeal to the Court of Appeal from them over the procurement issue only.
Leeds City Council’s costs were more than £4m in the case with the costs for Montpellier Estates estimated to be a similar amount.
Montpellier Estates lawyers, Walker Morris, said in April that they would be looking to take the case to the Court of Appeal.
Mark Fry, partner at BTG Financial Consulting, advisors to Montpellier Estates Limited, confirmed that RBS has appointed LPA Receivers over the company’s buildings portfolio.
He said: “Following the presentation of a winding up petition by Leeds City Council, the bank , who are the company’s largest creditor, has appointed LPA Receivers to protect its position. It’s an unfortunate outcome. Montpellier was in discussion with both the bank and the Council in relation to a financial restructuring which aimed at paying the Council in full, the costs ultimately awarded.
“The presentation by LCC of a winding up petition brought an end to these discussions and left the bank with little option. It is not expected that there will be any return to unsecured creditors which includes the Council.”
He added: “MEL had appealed against the Court judgment, but had agreed to ‘stay’ that whilst in settlement discussions with the council. By issuing a winding up order the Council has ensured the company cannot now appeal or get the justice they still believe is due.”
Lawyers to Montpellier Estates have advised the company not to comment at this time.
The Montpellier Estates portfolio to which receivers have been appointed includes:
• Land at Old Lane Beeston, Leeds, LS11 7AB
• 53 The Calls, Leeds, LS2 7EY
• 55 Austhorpe Road, Crossgates, Leeds, LS18 8EQ
• Land and buildings lying to the North of Renny’s Lane Durham DH1 2RS
• Land and buildings at Northgate Huddersfield, HD1 6AE
• Units 1-5, Manor Court, Manor Road, Holbeck, Leeds, LS11 9AH
• 5-7 Church Lane Crossgates Leeds, LS15 8BB
• Land and buildings at the junction of Roseville Road and Benson Street Leeds, LS8 5QP
• Ford car showroom, Wallgate, Wigan WN3 4AE
• Montpellier House 4 Cold Bath Road Harrogate, HG2 ONQ
