Administrators appointed to Opal businesses
ADMINISTRATORS have been appointed to 13 companies within the debt-laden Manchester-based student accommodation specialist Opal Property Group.
The business, which owes 14 lenders more than £880m, has been desperately trying to refinance for several months.
Ernst & Young has now been appointed at more than a dozen Opal businesses which own 20 properties around the country.
E&Y said in a statement the properties provide student accommodation and professional lets for 7,200 tenants in nine locations throughout the UK – Bradford, Dundee, Huddersfield, Leeds, Leicester, Liverpool, London, Manchester and Wolverhampton.
The administrators, E&Y partners Sam Woodward, Alan Bloom and Tom Jack stress it is “business as usual” for tenants in the properties.
In addition to the properties E&Y are handling, BNP Paribas has been appointed fixed charge receiver of the property London 4, Tufnell Park in London owned by Opal Carleton Limited (OCL).
The remaining 54 Opal Group companies owning nearly 30 properties are not affected by these insolvencies.
A statement said: “The administrators are currently undertaking a full review of the 20 properties in the portfolio. All the properties will continue to be fully serviced by managing agents and residents will not be affected.
Sam Woodward, joint administrator, said, “Following the expiry of facilities, the Companies and OCL have failed to agree an ongoing funding structure with its secured lenders”.
“We are keen to stress that it is business as usual for the portfolio. Tenants should be assured that any rents paid in advance will be honoured by the administrators. The managing agents will continue to operate the properties and residents should continue to enjoy the accommodation and facilities on offer.”
The individual student residencies are : Opal Hall, Manchester (students contract directly with university); Opal Gardens, Manchester; Daisybank Hall, Manchester; Oxford Court, Manchester; Briarfields, Manchester; Lambert & Fairfield, Manchester.
Leeds 1, Leeds; Aspley Halls, Huddersfield; Arkwright Hall, Bradford; Great Newton, Liverpool; Fiveways Hall, Wolverhampton; Grosvenor, Leicester;
Opal 1, Dundee.
Properties let to professionals are: Orient House, Manchester; Mayfair Court Manchester; Opal Court Manchester; Fairfield House, Manchester; Opal House, Manchester and 15/25 Ladybarn, Manchester.
Opal, based on Ducie Street, was founded by entrepreneur Stuart Wall in the 1980s. It was one of the largest student accommodation providers in the country with more than 20,000 beds.
Opal had until March 1 to agree terms with its lenders – facilities with four lenders owed £412m had already expired.
