Manyoo land sale won’t pay back bank
THE administrators of collapsed property firm Manyoo LLP have agreed a sale of the freehold site on which the company was building apartments in Salford Quays.
The sale has been detailed in the latest report prepared by joint administrators from KPMG, although no value has been revealed and the buyer’s identity is being kept secret until the deal concludes. This is expected to happen within the next month.
The proceeds of the sale are unlikely to raise enough to repay the mortgage of almost £9.9m secured on the site by lender Bank of Ireland, with KPMG suggesting that the bank is likely to suffer a “significant shortfall” on the money it is owed.
Peel Investments (North) also held a £7.7m charge over a land title over part of the site, and had appointed Begbies Traynor as Law of Property Act Receiver over the asset in May 2009, several months before administrators were appointed to Manyoo LLP in March 2010.
However, the administrators have said that due to the shortfall to the bank, neither Peel Investments (North), joint venture partner Yoo Holdings or any unsecured creditors are likely to receive any money owed to them.
Manyoo was a joint development between the now-defunct Leeds-based developer KW Linfoot and London-based financier Yoo Capital. The pair had proposed to build more than 1,000 one,two and three-bed apartments at Salford Quays next to the Harbour City tram stop.
A couple of the residential towers were supposed to be designed by Jade Jagger but plummeting residential values meant the scheme never got off the ground and the last valuation placed on the site by joint administrators valued it at £1m. The company was also owed £.25m from KW Linfoot and £417,825 by its founder Kevin Linfoot – neither of which are recoverable.
The administrators’ own bill for managing the process to date has now reached more than £150,000.
