Controversial £30m Angelgate build ‘to start soon’

Pinnacle Alliance says its £30m Angelgate property development in Manchester into which scores of private investors have ploughed savings is to start soon.

Although Greater Manchester Police are investigating the activities Pinnacle after complaints from individual backers who have paid up to £350,000 each to secure plots, a company spokeswoman now says buyers will get their apartments they bought “for the price that they agreed to purchase them for”.

Fears have been voiced by investors that the development would not be delivered and there has been adverse publicity about the development because of delays on the development.

Police in the Hong Kong are also investigating as a result of complaints from Far Est investors.

Pinnacle said it originally appointed contractor PHD1 to complete the build, but in 2015 there were numerous delays and the construction company went into administration.

“Pinnacle quickly embarked on finding a new construction company to complete the build, but rant into extensive problems with the quote,” the spokeswoman said.

“PHD1 had significantly under-valued the build costs, and for months Pinnacle could not find a construction company who would be willing to take on the build.

“Pinnacle has worked tirelessly to find another construction company willing to take on the build at the original quote price. The company desperately did not want to let buyers down, or to have to ask them for any additional funds.”

She said Pinnacle had now reached a deal with new main contractor Goodwin Construction Group, based in Cheadle, Greater Manchester, which has said it is willing to take on the build “at no extra cost to buyers”.

A spokesperson from Goodwin Construction Group said: “We are looking forward to recommencing the Angelgate build.

“The development has huge promise in the thriving city of Manchester. We’re ready to commence work as soon as the pre-construction services agreement and surveys have been conducted and we have buyer approval.”

The Pinnacle spokeswoman reiterated that buyers would get the apartments they bought for the price that they agreed to purchase them for.

“The value of the apartments once built have already likely increased by between 30-50%,” she said. “Once the building is delivered the investors could potentially make a substantial increase on their investment.

“There have been no profits for Pinnacle, quite the opposite, and they have provided buyers with the full cash flow overview to evidence this.

“All of the commissions received were spent on: sales agents; marketing the apartments; wages and business running costs.

“With the remaining funds outstanding, moneys in the account and contingency fund (plus) Pinnacle selling the freehold, unsold units and commercial areas being changed to residential Pinnacle will have all the funds required.

“In addition – all funds generated from the above will be paid into the buyers company account which is controlled by the buyers via their elected directors. The buyers will have full control over expenditure.”

At Companies House, the registered director of Pinnacle Alliance Group is Andrew Dixon, 34. Its address is Ground Floor, Ocean House, Towers Business Park, Wilmslow Road, Manchester.