City centre development project due to re-start after firm fell into administration
A Bradford City Centre development project to convert a commercial building into a 126-flat scheme is to re-start.
Business advisory firm Quantuma has advised on a restructuring deal for the Xchange House refurbishment project, following the administration of developer Pinnacle (Bradford) Limited.
The restructuring and refinancing deal safeguards the Xchange House development, a project to turn the Bradford city-centre commercial building into 126 flats. The deal will allow investors to appoint new developers to complete the project, with completion expected within the next six months.
Quantuma was appointed as administrators of Pinnacle (Bradford) Limited, part of the Manchester-based Pinnacle Group, after the construction company ran out of funds in 2017. Quantuma worked with investors, lenders and the landlord to negotiate a sustainable deal to restructure and refinance the Xchange project.
On average, investors had placed between 50% and 80% of the sales value as a deposit in the scheme, which they had stood to lose had the development been subject to a forced sale.
The Quantuma team was led by director Simon Campbell.
Campbell, Joint Administrator and Director at Quantuma, said: “This deal importantly gives control of the refurbishment back to the investors, via their appointed professionals. They will have to invest further funds into a fresh company to complete the works but can do so safe in the knowledge that it will be free from legacy liabilities.
“The position that the investors found themselves in was unenviable. Our team has worked tirelessly to rebuild the trust of all stakeholders. As a result, the transfer of the property and the completion of investor leases are hopefully now imminent, and we should see development work re-start shortly.”
