Few signs of action at Albany site

THE unnamed developer who exchanged contracts on the Albany Crown site has yet to submit a planning application to bring the scheme forwards.

A new report by administrators Deloitte states that the sale of the site – on which contracts were exchanged on July 8, 2011 – is “subject to the purchaser obtaining the satisfactory planning permission”. It added that the process was “ongoing”, but as yet no planning application has been filed with the city council for the site.

“Should this party fail to complete the contract in a reasonable time scale, the administrators will consider an alternative strategy to realise the property,” the report states.

Deloitte was appointed as administrator to Albany Crown two years ago. The company, which was owned by Liverpudlian Chris Nisbet, had gained planning for an £80m, 44-storey tower which was to contain a hotel on lower floors and serviced offices above.

He had borrowed £7.25m from Barclays to build the scheme, but was unable to secure an operator for the scheme. Planning permission eventually lapsed and the value of the site plummeted.

Although administrators have not included a value they are likely to obtain as a result of the sale “as this could prejudice ongoing negotiations”, an earlier report estimated its value at £2m.

The latest update also shows that Deloitte’s fees in handling the administration have now reached £102,944.