Stockport mills developer in administration

A COMPANY which was selling apartments within refurbished mills in the Reddish area of Stockport has been placed into administration.

Millshomes, which was owned by Richard and Julie Sym, appointed Paul Stanley and Jason Greenhalgh from the Manchester office of Begbies Traynor as joint administrators on March 29.

Millshomes had been responsible for a number of regeneration projects at its Houldsworth Village scheme – a four-phase, £60m project which involved the redevelopment of both Victoria Mill and Elisabeth Mill.

Victoria Mill had completed and 140 of the 180 properties were sold, but administrators have said they plan to let the remaining 40 homes rather than release them en masse into a “stale” property market. 

Joint administrator Paul Stanley said: “The slump in mortgage lending and wider economic downturn was the downfall of Millshomes and, as it stands, value is best realised by letting out the completed units.”

“These apartments have been built to a good standard and let well. They are better than many of the other schemes I have seen both in terms of location and spec.

“Greater Manchester has many part-finished developments and mixed-use schemes. Developments that once epitomised city living and went like hot cakes to eager buy-to-let landlords now stand empty or unfinished.

Begbies Traynor is still considering its options for Millshomes’ other projects – including the part-finished residential scheme at Elisabeth Mill and the industrial unit at Eleanor Mill.

Stanley said the firm was expecting a greater number of property-related administrations as developers who have managed to hang on during a tough property market over the past few years are finally forced to bow out due to the lack of new buyers in the market.

“When properties are selling or being repossessed for a fraction of what they were valued at in 2008 it makes little sense to carry on selling them, and so lenders are increasingly finding themselves taking on the role of landlords, usually via LPA receivers or administrators.”