DFL006 - Student Accommodation, Cardiff SUSPENDED
Jul 17, 2021 12:41:30 GMT
ozboy, k6, and 2 more like this
Post by Mousey on Jul 17, 2021 12:41:30 GMT
Right to clear up any confusion:
(Incidentally typed up on a train to Cardiff)
Lendy do have a first charge, not disputed AFAIK by anyone.
As I've said before:
The administrators are selling it for £1.5m with the UN1's still attached. The UN1's are valued at £8.9m.
A question that may want to be asked is why didn't the administrators remove the UN1's before sale?
"if a party were to acquire the property with the security interests intact, they would have to complete the development to comply with the terms of the sale contracts, and then complete the sales at the contracted prices, net of previously received deposits. That would reduce developer's profit by some £xxx,000, which would impact on the residual value and the sale price. "
From the first link:
"In Williams and another v Broadoak Private Finance Ltd and others [2018] EWHC 1107 (Ch), the court held that joint administrators were entitled to dispose of a partly-developed freehold property, free from the interests of both a secured lender and several contracting purchasers."
Very careful scrutiny should be carried out as to:
a) What consideration the Borrowing Company's Administrators gave to selling the property free of the Equitable Liens.
b) What consideration the Welsh Government gave to buying the property with the Equitable Liens in place.
