Lake District housing development rescued
Duff & Phelps has led the restoration and development of the Ironworks site in the Lake District, saving an historic monument and securing the construction and completion of 43 holiday homes.
This follows the appointment in 2017 of Sarah Bell and Matthew Ingram as administrators to property development business Reno Global.
Sarah Bell explains the approach that the company took to saving this ambitious development in Backbarrow, Cumbria: “When Matt and I were appointed as joint administrators to the project, it was in a perilous state.
“We had been initially appointed receivers in 2015, with a subsequent appointment as administrators in 2017. As a result many local residents in the area were unhappy that the site had not progressed in years.
“Investec, which had provided the majority of the financing, stepped in and took back control of the project and appointed us as administrators. However, the project faced a number of challenges, limiting the amount of value that could be gained.”
She added: “On the Ironworks site is a Scheduled Ancient Monument (SAM), a blast furnace built in 1711, believed to be the only remaining example of its type, one of the first charcoal-fired blast furnaces to be built in Cumbria.
“The SAM was in very poor condition, and the cost of restoring it made the site an unattractive sales proposition.”
Sarah said strict planning restrictions in the Lake District and restrictions on sales of new-build properties to non-local residents added further complexity to the process of completing the site.
“Duff & Phelps and Investec proposed a solution to the local council where we would take on the cost of restoring the SAM, and the council would review the planning and sales restrictions.
“The council agreed, and we have been working hard on this substantial restoration project with Investec, investing £700,000 for the administrators to repair and recondition the blast furnace, preserving an essential piece in the history of English innovation that was on Historic England’s top 10 list of most ‘at risk’ monuments.”
Duff & Phelps worked in partnership with Investec and Indigo Planning to complete the restoration of the SAM and progress construction of 43 open market apartments, securing a future for the site and ensuring that the development would be completed.
Duff & Phelps has also negotiated to transfer ownership of the SAM on completion of the works to a local community trust and assist with the expertise and funding to keep it in good condition.
The community is also seeing significant benefits, with a construction project providing jobs and revenue to local suppliers, and the conversion of a near-derelict site that had been a blight on the area.
Sarah said: “This project is a fantastic example of how a modern development can sit comfortably alongside a dedicated restoration of a national monument.
“It’s rare that we can really say everyone’s a winner, but in this case the community has seen a dilapidated eyesore transformed into a development designed in the local style, investors have seen a near-failure turned around, and a precious monument has been saved.
“This award-winning project should stand as an example to any property business of the potential success of a development, if they are willing to commit to local heritage and work with authorities to reach a solution that satisfies all parties.”
