Prime Nottingham site set to be sold out of administration
A prime piece of land with planning permission for a major gateway scheme in Nottingham looks set to be sold after its owner fell into administration.
Manchester-based Crosslane (Huntingdon Street Nottingham) Limited submitted preliminary proposals for a six storey, 210-bed student block at 5-17 Huntingdon Street back in October 2019.
The scheme looked to be in jeopardy earlier this year when the company posted a notice of intention to appoint administrators (NOI).
The company secured planning permission for its Nottingham site in October 2021 and had hoped to see the development occupied by the start of the 2023/24 academic year.
However, according to documents seen by TheBusinessDesk.com, Crosslane (Huntington Street Nottingham) took out a bridging loan, with a nine-month term, from ZSL Capital.
Demolition works on the site started in February 2022 and finished the same summer.
However, the loan fell into default on 15 November 2022, with ZSL approaching Leonard Curtis to discuss the cash owed to it. Despite this, Crossland (Huntingdon Street Nottingham) revealed it was in discussions with a third party lender and a formal extension to the ZSL loan, to December 2022, was agreed.
The extended deadline wasn’t met by Crosslane and ZSL decided that it wasn’t going to be repaid.
Joint administrators from Leonard Curtis were called in and instructed Colliers to market the Nottingham site, but, despite receiving offers from a “small number” of interested offers, it is unlikely that ZSL will receive a full repayment and will claw back just over £1m of the almost £4m owed to it.
Other substantial creditors who are unlikely to see a penny back include Wates Construction, which is owed almost £850,000.
Collier says the land should be sold imminently.
