A controversial property development in Liverpool city centre has now been sold by administrators for a reported £1.6m.
The reported sale of Fox Street Village comes shortly after investors lost a High Court battle to stop administrators from selling the site. They have now pledged to continue their fight for compensation.
Fox Street Village Ltd (FSVL) went into administration last July and was reported to owe creditors around £10m. Sister company Linmari Construction Limited went into liquidation on April 12 2019 with a deficit of over £1m.
Liverpool Council later issued a number of enforcement notices on the site in Fox Street in Everton because the development was ‘poorly finished’ and failed to meet standards.
A number of prohibition notices were also issued, forcing residents to move out of blocks B, C and E due to concerns about external cladding and other safety issues.
Administrators David Rubin and Partners have now told the ECHO that they have sold the site to SGL 1 Limited.
The sale of the site was approved following a judgement by the High Court in September.
A group of investors in the original scheme have tried to block attempts by the administrators to sell the site.
A spokesperson for the Fox Street Village Investors Association (FSVIA) told the ECHO that in October they launched a civil action against administrators Asher Miller and Henry Lan of David Rubin and Partners to try and block the sale.
A spokesperson for FSVIA said: “We have made an offer to buy the freehold at £1,650,000 and selling the freehold to us is exempted transaction under the LTA 1987.”
The spokesperson explained that following the recent news of the sale they are now likely to pursue the administrators for damages on the grounds that they were not offered the right of first refusal on the site.
The investors claim the site has been sold for £1.6m.
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The administrators confirmed the sale earlier this week although they declined to discuss the price.
Mr Miller told the ECHO: “I can’t really comment on the remaining hearings other than to confirm that the sale was approved by the High Court and has been completed and title to the site has passed to SGL 1 Limited as the purchaser.”
The case is set to be heard at Liverpool Civil Court this coming week.
In September Judge Halliwell ruled that the administrators did have the right to sell the site. His judgement, published on September 25, reads: “I shall thus make an order, under Paragraph 71 of Schedule B1, authorising the Administrators to dispose of the Property free from security at a price of not less than £1,600,000. By virtue of Paragraph 71(3), the net proceeds of disposal shall be applied to the discharge of the secured sums.”
Last year there were concerns about the external cladding on the blocks B, C and E due to concerns about external cladding and other safety issues.
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The concerns followed the Grenfell Tower fire in which 72 people died. A public inquiry into the fire is underway.
Earlier this year it emerged that Liverpool Council was left with a bill for £340,000 after being forced to implement extra safety measures at a block of flats that were found to have unsafe cladding.
The council ordered a round-the-clock “waking watch” at the Fox Street Village development in Everton last year after ACM cladding in the building was deemed to pose a risk to life.