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How firm behind luxury city centre apartment plans collapsed as it still owes over £50 MILLION
20.07.2023 - 10:17 / manchestereveningnews.co.uk
A company behind a planned luxury apartments development in Castlefield owed over £50m as it entered administration.
Property group DeTrafford had been aiming to build 419 flats on land in Ellesmere Street as well as space for commercial and leisure facilities. It set up a special purpose vehicle (SPV) to manage the project, De Trafford No1 Castlefield Limited, which would have been known as No1 Castlefield.
However, the SPV entered administration at the end of May with Rick Harrison and Howard Smith from Interpath Advisory being appointed to oversee the process after it suffered a series of financial setbacks.
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Now, a newly-filed document with Companies House has outlined how the business collapsed and how much it owed to its creditors when it entered administration.
DeTrafford No1 Castlefield Ltd was incorporated in May 2016 to act as a special purchase vehicle through which the acquisition of land in Ellesmere Street, Manchester, could be completed.
The land was bought in order to build a mixed-use development of 419 apartments in five multi-storey blocks as well as 2,997 sq m of commercial and leisure space. The development was to be known as No1 Castlefield.
Planning permission was granted in July 2018 while the land was acquired in November of that year.
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Residential units within the scheme were sold to investors off-plan in exchange for a deposit from which, together with development funding, the company could start construction. However, construction stalled and did not progress beyond the light-industrial units on the site.
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